In a video produced by Franco-Nevada (TSX: FNV; NYSE: FNV), Chairman David Harquail sits down with Ingrid Hibbard, president and CEO of Pelangio Exploration (TSXV: PX), to reminisce about how their two companies combined their efforts to put the Detour gold mine in Ontario into production in 2013. “It was a big deal for Pelangio and it all started with a handshake,” Hibbard recalls. “We thought we had an opportunity to acquire all of the ground that we didn’t already have at Detour, which included the mine, and we needed money, and it was 1998, and money was really hard to get, and if it wasn’t for meeting you and that handshake deal, it never would have happened.”
“What I remember is that you brought a great opportunity to us,” Harquail says. “It was a property that already produced 1.8 million ounces. It was 30 miles of strike length on Archean Greenstone Belt, and gold prices were at US$300 an oz. and I think both you and I recognized that only two things could happen: We were going to find more ounces and the gold price was more likely to go up than down.” Franco-Nevada has a 2% royalty on Detour.
Watch video here:
Read The Northern Miner’s coverage of this historic agreement between the two companies:
Pelangio takes over Detour Lake properties – October 5, 1998