(in U.S. dollars unless otherwise noted)
TORONTO, Feb. 12, 2026 /CNW/ - Franco-Nevada Corporation ("Franco-Nevada" or the "Company") (TSX: FNV)$(FNV)$ is pleased to announce that, through a wholly-owned U.S. subsidiary, it has entered into an agreement to acquire a $250 million net smelter return royalty (the "Royalty") from i-80 Gold Corp. ("i-80 Gold") to support its recapitalization plan and strategy of creating a Nevada-focused mid-tier gold producer. The Royalty rate will initially be 1.5%, increasing to 3.0% beginning in 2031, and will apply to all of i-80 Gold's material properties including their six projects in various stages of development. These projects cover more than 250 km(2) of prospective ground and include: Granite Creek Underground (operating), Archimedes Underground (development), Mineral Point Heap Leach (study), Granite Creek Open Pit (study), Cove Underground (study), and Lone Tree open pit (study).
i-80 Gold has outlined a three-phase development timeline to put the projects into production, anticipated to increase annual production from 150--200 koz Au in Phase 1 to 600+ koz Au with Phase 3 in 2032+. This financing, together with i-80 Gold's concurrent recapitalization plan, provides substantial capital to develop Phases 1 and 2. See i-80 Gold's press release dated February 12, 2026 for additional details.
"We are pleased to add i-80 Gold's extensive portfolio of assets in Nevada to our U.S. portfolio and to partner with i-80 to advance their development plans," said Paul Brink, President & CEO of Franco-Nevada. "The i-80 team has an excellent track record and we look forward to partnering with them as they unlock what we believe will be one of largest gold operations in Nevada."
Richard Young, President & CEO of i-80 Gold, commented: "We are thrilled to have Franco-Nevada as a partner who shares our long-term vision of advancing our gold portfolio to create a Nevada-focused mid-tier gold producer. With Franco-Nevada providing the foundational capital as part of our recapitalization, we now have a clear and achievable path to over 600,000 ounces of gold production annually by the early 2030s. With additional drilling and optimization work on our large land package, we believe there are opportunities to create further long-term growth and value for all stakeholders."
Transaction Highlights
-- Royalty Covers all of i-80 Gold's Growth Plans in Nevada: i-80 Gold is
planning an aggressive asset development program that will increase
production from 30-40 koz Au in 2025 to more than 600 koz Au per year by
2032 upon completion of all 3 phases of the development plan, delivering
a strong growth profile. Phase 1 increases annual gold production to
150-200 koz Au from Granite Creek Underground and Archimedes Underground
with processing at the Lone Tree Autoclave in 2028-2029. Phase 2 further
increases annual production to 300-400 koz Au commencing in 2030-2031
adding Cove and Granite Creek Open Pit. Finally, Phase 3 in 2032+ adds
Mineral Point and increases annual production to 600+ koz Au.
-- Comprehensive Financing Plan Unlocks Processing Hub: This financing,
alongside the concurrent recapitalization plans at i-80 Gold provides
substantial capital to advance Phases 1 and 2, including the
refurbishment of the Lone Tree Autoclave facility, providing a central
processing hub for the Granite Creek, Archimedes and Cove underground
operations.
-- Attractive Anchor Project in Mineral Point Heap Leach: Mineral Point is
an attractive, large-scale and straight-forward heap leach project
hosting 4.6 Moz AuEq M&I mineral resources and 3.2 Moz AuEq inferred
resources1. Mineral Point is Phase 3 of i-80 Gold's plan, with potential
to accelerate the feasibility study and permitting work with part of the
Royalty financing tied to Mineral Point technical and permitting work.
Mineral Point is expected to produce 282 koz AuEq per year once in
production.
-- Royalty Rate Step-up: The Royalty has been designed to maximise cash flow
available to i-80 Gold during the capital intensive phase of asset
development. The Royalty rate will be 1.5% until January 1, 2031 and
thereafter will be 3%.
-- Large Mineral Resource with Exploration Potential: The Royalty will cover
a large resource base including Granite Creek, the Ruby Hill Complex
(including Archimedes Underground and Mineral Point), Cove and Lone Tree.
The 256 km2 land package in Nevada hosts a substantial mineral base of
7.8 Moz AuEq M&I mineral resources and 8.6 Moz AuEq inferred mineral
resources1.
-- Experienced Management Team: i-80 Gold is led by Richard Young, who has
over 30 years of experience in the resource industry. Richard played a
key role in Teranga Gold's transformation from a single asset producer
into a successful low-cost, mid-tier gold producer and Richard most
recently served as President and CEO of Argonaut Gold that was acquired
by Alamos Gold Inc. i-80 Gold operations are led by Paul Chawrun who has
over 30 years of experience permitting, building and operating gold mines
globally, most recently as COO and EVP of Centerra Gold and previously as
COO of Teranga Gold. Further, the i-80 Gold leadership team holds
extensive Nevada mining experience in operations, processing, permitting,
and stakeholder relations.
-- Gold Focused Royalty in Nevada: The Royalty financing increases our
long-term gold exposure in Nevada, where our royalty coverage already
extends to Goldstrike, Gold Quarry, Arthur, Marigold, Bald Mountain,
South Arturo and numerous other properties.
Royalty Key Terms
-- Upfront proceeds of $225M upon closing, with a further $25M payment
subject to completion of 2026 budgeted spending at Mineral Point.
-- Upon closing, 1.5% of net smelter returns on all minerals produced.
Beginning January 1, 2031, the Royalty rate will increase to 3.0% of net
smelter returns in perpetuity.
-- The Royalty will apply to all material properties in i-80 Gold's
portfolio, including Granite Creek, Cove, the Ruby Hill Complex and Lone
Tree, including after-acquired properties within a 1-mile area of
interest.
-- The Royalty will be registered on title as an interest in land.
Additional Considerations
-- Franco-Nevada will maintain a right of first offer on future streams,
royalties and similar interests related to i-80 Gold's assets.
-- Franco-Nevada will partner with i-80 Gold on environmental and social
initiatives in Nevada.
-- Closing of the transaction is subject to customary conditions and is
expected to occur in March 2026.
Financing the Transaction
Franco-Nevada intends to finance the transaction from cash on hand. The Company had $0.9B in cash and cash equivalents and marketable securities and $1.9B in available capital as at September 30, 2025.
Franco-Nevada Corporate Summary
Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges. Franco-Nevada is the gold investment that works.
________________________________________ (1) Total resources converted into gold equivalent at long term prices of $3,302/oz Au and $40.31/oz Ag. Total resources include the following: Granite Creek Underground -- 0.8 Mt at 10.5 g/t Au for 261 koz Au measured and indicated resources and 0.8 Mt at 13.0 g/t Au for 326 koz Au inferred resources. ------------------------------------------------------------ Granite Creek Open Pit -- 37.7 Mt at 1.2 g/t Au for 1,435 koz Au measured and indicated resources and 2.1 Mt at 1.1 g/t Au for 75 koz Au inferred resources. ------------------------------------------------------------ Ruby Hill -- Archimedes Underground -- 1.8 Mt at 7.6 g/t Au and 1.6 g/t Ag for 436 koz Au and 92 koz Ag indicated resources and 4.2 Mt at 7.3g/t Au and 2.1 g/t Ag for 988 koz Au and 286 koz Ag inferred resources. ------------------------------------------------------------ Ruby Hill -- Mineral Point Open Pit -- 217 Mt at 0.5 g/t Au and 15.0 g/t Ag for 3,376 koz Au and 104,332 koz Ag indicated resources and 194 Mt at 0.3 g/t Au and 14.6 g/t Ag for 2,117 koz Au and 91,473 koz Ag inferred resources. ------------------------------------------------------------ Ruby Hill -- Archimedes Open Pit -- 4.3 Mt at 2.0 g/t Au and 10.6 g/t Ag for 272 koz Au and 1,490 koz Ag indicated resources and 0.9 Mt at 1.1 g/t Au and 8.5 g/t Ag for 31 koz Au and 250 koz Ag inferred resources. ------------------------------------------------------------ Cove -- 1.2 Mt at 8.2 g/t Au and 15.0 g/t Ag for 310 koz Au and 568 koz Ag indicated resources and 4.0 Mt at 8.9 g/t Au and 11.1 g/t Ag for 1,156 koz Au and 1,439 koz Ag inferred resources. ------------------------------------------------------------ Lone Tree -- 7.7 Mt at 1.7 g/t Au for 428 koz Au indicated resources and 52.9 Mt at 1.6 g/t Au for 2,789 koz Au inferred resources. ------------------------------------------------------------
About i-80 Gold Corp.
(MORE TO FOLLOW) Dow Jones Newswires
February 12, 2026 07:23 ET (12:23 GMT)
Comments