Franco-Nevada Corporation

Franco-Nevada Corporation

November 29, 2007 21:25 ET

Franco-Nevada Announces Pricing of its Initial Public Offering

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2007) -

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

Franco-Nevada Corporation ("Franco-Nevada") announced today the pricing of its initial public offering of 72 million common shares at a price of C$15.20 per common share, for total gross proceeds of approximately C$1.1 billion. These proceeds, together with US$140 million of new borrowings, will be utilized by Franco-Nevada to acquire the royalty assets and certain other non-core investments of Newmont Mining Corporation ("Newmont"). Earlier this year, Newmont announced plans to monetize components of its royalty and equity portfolio to fund the development of its core gold business.

BMO Capital Markets and UBS Securities are joint bookrunners on the offering.

Franco-Nevada has granted the underwriters an over-allotment option, exercisable for a period of 30 days from the date of the closing of the offering, to purchase up to an additional 10.8 million common shares at the issue price to cover over-allotments, if any, and for market stabilization purposes. If the over-allotment option is exercised in full, total gross proceeds of the offering will be approximately C$1.26 billion, of which US$140 million will be used to repay outstanding Franco-Nevada debt.

It is anticipated that common shares of Franco-Nevada will begin trading on a "when issued" basis under the symbol FNV on the Toronto Stock Exchange on Monday, December 3, 2007. The offering is expected to close on December 20, 2007.

Following the closing of the offering, but prior to exercise of the over-allotment option, Franco-Nevada will have 78 million common shares outstanding.

Pierre Lassonde, the Chairman of Franco-Nevada, said, "We are very excited by the success of our IPO, both for Newmont and our new shareholders, and look forward to the many opportunities ahead of us."

A copy of the final prospectus will be filed with the Canadian securities regulators and will be available at www.sedar.com.

The securities referenced by this news release have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy common shares of Franco-Nevada Corporation in any jurisdiction.

Forward-Looking Information

This news release contains forward-looking statements, 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 and terms of the initial public offering. 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, 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. Additionally, Franco-Nevada expressly disclaims any obligation to comment on expectations of, or comments made by, third parties in respect of the possible transaction.

Contact Information

  • Franco-Nevada Corporation
    David Harquail
    Chief Executive Officer
    (416) 480-6480
    or
    Franco-Nevada Corporation
    Paul Brink
    Chief Financial Officer
    (416) 480-6480