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Friday, 23rd January 2009 (1787 views)

Coeur d'Alene Mines has entered into an agreement with Franco-Nevada under which it will receive $80 million (£58.6 million) for a 50 per cent gold royalty stream in the Palmarejo project.

The project in Mexico is scheduled to start production in March this year and Franco-Nevada will receive an interest in 50 per cent of the gold produced from the property.

Palmarejo predicted that the mine will have the capacity to produce around 120,000 ounces of gold per year, with initial production this year of 72,000 ounces of gold.

Based in Toronto, Franco-Nevada is seeking additional investments and has more than $400 million in cash and other facilities to fund both the Coeur d'Alene deal and other purchases.

Coeur d’Alene Mines owns a series of properties in the Americas, including the Kensington gold project in Alaska and is conducting exploration activities in Argentina, Chile and Mexico.

Franco-Nevada is a gold-focused firm with royalty properties in the US, Canada and Australia.

 

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