In July 2023, Tiernan entered into a Royalty Agreement (the “Agreement”) with a subsidiary of Franco-Nevada Corporation (“Franco-Nevada”). The key terms of the Agreement are, as follows:
- $15 million cash payment by Franco-Nevada to a subsidiary of Tiernan
- Creation of a new 1.5% net smelter return royalty on gold and copper production from Volcan in favour of Franco-Nevada
- Franco-Nevada retains a right of first refusal for any future royalty or stream financings for the Project
- Franco-Nevada holds an option to acquire a further 1% royalty on the Project at the time of a board-approved construction decision based on a feasibility study and consensus metal prices at the time
- Funds can be utilised for advancing the Project and business expenses for Tiernan
With the closing of the Royalty Financing, Tiernan is be fully funded for the next phases of work on the Project.