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Franco-Nevada Announces Financing Package with Discovery Silver on the Porcupine Complex

1. Franco-Nevada finances Discovery's acquisition of Porcupine Complex with a $300M royalty. 2. Includes a $100M loan and $49M equity investment supporting Discovery's growth.

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Why Bullish?

The financing supports Discovery’s growth, potentially increasing FNV's cash flow and market position. Similar past transactions have led to positive investor sentiment.

How important is it?

The transaction directly enhances FNV’s portfolio and income streams, indicating strong strategic relevance. Its size and structure signify impactful changes in operational outcomes.

Why Long Term?

As the investment contributes to Discovery's operational growth, FNV's benefits will materialize over time. Historical performance shows long-term gains from strategic financings.

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DMLFNEM
(in U.S. dollars unless otherwise noted) TORONTO , Jan. 27, 2025 /PRNewswire/ - Franco-Nevada Corporation ("Franco-Nevada " or the "Company") (TSX: FNV) (NYSE: FNV) is pleased to announce that it has entered into a comprehensive financing transaction with Discovery Silver Corporation ("Discovery") to support its proposed acquisition of the Porcupine Complex located near Timmins, Ontario from Newmont Corporation. The transaction includes: i) a 4.25% net smelter return royalty (the 'Royalty") for $300M, consisting of two tranches, on production from the Porcupine Complex, ii) a $100M senior secured term loan (the "Loan") available to be drawn by Discovery within two years of closing, and iii) approximately $49M of equity participation with a cornerstone investment in a concurrent C$225M (approximately $155M) Discovery equity raise.

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