Royalty-holder Franco-Nevada Mining (TSE) has paid US$2.25 million to South Africa-based Rustenburg Platinum for a 5% net profits interest royalty in that country’s Pandora platinum property.
The deposit is situated between two other platinum mines — Western Platinum of Lonrho PLC, and Crocodile River of Impala Platinum — and is said to be the last major undeveloped platinum property in the Western Bushveld. The deal marks Franco-Nevada’s first move into Africa, and according to company President Pierre Lassonde, “the property was a bargain with no risk.” The 17,193 acre property contains 31 million oz. of proven and probable platinum group metal reserves, which were developed between 1973 and 1983 by Texas Gulf and confirmed in a recent study by Watts Griffis & McOuat. Lassonde estimates that it will take 5 to 10 years for a mine to be developed. South Africa accounts for 77% of the world’s platinum supply. Last year, it produced 3.4 million oz.
Franco-Nevada’s other assets include royalty and net profits interests in the Goldstrike mine in Nevada, royalties on 56,000 acres along the Carlin gold trend, interests in the Hemlo gold camp, and an oil and gas royalty portfolio covering more than 1 million acres in Alberta, Saskatchewan and Manitoba.
Be the first to comment on "Franco-Nevada buys platinum royalty"