Franco-Nevada Corporation
TSX : FNV

Franco-Nevada Corporation

February 22, 2008 07:03 ET

Franco-Nevada Announces C$232,500,000 Bought Deal Financing

TORONTO, ONTARIO--(Marketwire - Feb. 22, 2008) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Franco-Nevada Corporation (TSX:FNV) ("Franco-Nevada") announced today that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets and UBS Securities Canada Inc., under which the underwriters have agreed to buy 10,000,000 units (the "Units"), from Franco-Nevada, and sell to the public at a price of C$23.25 per Unit, representing an aggregate amount of C$232,500,000. Each Unit consists of one Common Share and 1/2 of one Common Share Purchase Warrant (the "Warrant"). Each whole Warrant entitles the holder to purchase one Common Share at a price of C$32.00 on or before the date which is 4 years following the closing of the offering. In addition, the underwriters will also have an option exercisable for a period of 30 days after the closing of the offering, to purchase up to an additional 1,500,000 Units. The net proceeds of the offering will be used for resource royalty acquisitions and corporate development opportunities and general corporate purposes. Closing is expected on or about March 13, 2008.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities of Franco-Nevada Corporation in any State in which such offer, solicitation or sale would be unlawful.

This news release contains forward-looking information, including "forward-looking statements" within the meaning of applicable Canadian and United States securities laws. Such forward-looking statements include, without limitation, statements regarding the timing, terms and conditions and anticipated consequences of the possible transaction. Where statements by Franco-Nevada express or imply an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors (including without limitation risk factors identified in Franco-Nevada's filings available at www.sedar.com), which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Franco-Nevada expressly disclaims any obligation to release publicly revisions to any forward-looking statement to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Contact Information

  • Franco-Nevada Corporation
    David Harquail
    Chief Executive Officer
    (416) 480-6480
    or
    Franco-Nevada Corporation
    Philip Koven
    Bryan Mills Iradesso
    (416) 447-4740