Osisko Bermuda Limited and Franco-Nevada (Barbados) Corporation has entered into a definitive Purchase and Sale Agreement to acquire Gold stream of SolGold on July 15, 2024. FNB will provide a total of $525 million and Osisko a total of $225 million of funding for a total $750 million. FNB will provide $70 million and Osisko $30 million for a total of $100 million in pre-construction funding available as three equal sized staged payments.

The first tranche will be funded at closing with two further tranches, subject to development milestones. FNB will make $455 million available and Osisko will make $195 million available for a total of $650 million towards construction once the project is fully funded and further derisked. Funding is subject to customary conditions including receipt of all material permits, a board approved construction decision and the balance of financing being available, including a minimum equity commitment.

The FNB Stream deposit An upfront deposit of $23.4 million at closing followed by two additional staged deposits of $23.3 million each, subject to completion of key development milestones, the remaining $455 million will be payable in staged instalments during construction once the project is further derisked, Funding is subject to customary conditions including receipt of all material permits, a board approved construction decision and the balance of financing being available. SolGold will receive 20% of the spot gold price for each ounce of gold delivered. In the event of a change of control within five years from closing, FNB has the option to terminate the Stream and receive repayment of the deposit that has been advanced by such date plus a return.

If not elected, SolGold may purchase 50% of the Stream if the change of control occurs within three years from closing and 33.33% of the Stream if the change of control occurs in the following two years for a one-time gold payment equal to a 15.0% IRR on the portion of the deposit being bought back that has been advanced by such date, plus a change of control fee. FNB has agreed to partner with SolGold on environmental and social initiatives in the vicinity of the project for $750,000 over a 3 year period on a 70%/30% basis with Osisko. Franco-Nevada intends to finance the transactions from cash on hand, with approximately $1.3 billion in cash and cash equivalents and $2.3 billion in available capital as at March 31, 2024.