Franco-Nevada (FNV) Expands Nevada Royalty Portfolio with $250M Arthur Gold Deal

Franco-Nevada Corporation (NYSE:FNV) is one of the best stocks to buy amid gold rally. On July 23, Franco-Nevada Corporation, through its wholly-owned subsidiary, acquired a 1.0% net smelter return (NSR) royalty on AngloGold Ashanti’s Arthur Gold Project, formerly the Expanded Silicon Project. The royalty was purchased from Altius Minerals Corporation for $250 million in cash, with an additional $25 million payable pending arbitration outcomes.

Franco-Nevada’s new royalty covers a major part of the Merlin and Silicon gold deposits in Nevada and comes with no reductions or buyout options. The Arthur Gold Project has grown significantly, with gold resources rising 20% in a year—now totaling 3.4 million ounces of indicated and 12.9 million ounces of inferred resources. As of the end of 2024, 430 kilometers of drilling had been completed, including 132 kilometers just that year.

AngloGold, a top-tier mining company, plans to finish an early study by late 2025 or early 2026 for a large gold operation. Franco-Nevada paid using cash on hand and borrowed $175 million from its $1 billion credit line. The deal qualifies for tax benefits. If a legal decision supports Altius’ wider royalty claims, Franco-Nevada will pay an extra $25 million. Altius still holds a smaller 0.5% royalty and Franco-Nevada has the right to buy it first if it’s sold.

Franco-Nevada Corporation (NYSE:FNV) is a gold-focused royalty and streaming company. It manages a diversified portfolio of cash-flow producing assets across precious metals, energy, and other commodities. The company’s core business involves acquiring royalties and metal streams from mining operations, providing investors with exposure to gold prices and exploration upside while avoiding direct operational risks.

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Disclosure: None. This article is originally published at Insider Monkey.