Franco-Nevada subsidiary starts trading on TSE

Franco Nevada Mining has filed a final prospectus in connection with its plan to spin out to its existing shareholders a sister company called Euro-Nevada Mining.

Under the terms of the prospectus, Franco-Nevada will distribute to its shareholders a dividend of 484,492 common shares of its Euro- Nevada subsidiary. The dividend of one Euro-Nevada commom share will be paid to all Franco- Nevada shareholders for each 25 shares of Franco-Nevada held on Oct 16.

Franco-Nevada has recently completed the transfer of some of its non-producing assets to Euro- Nevada at their fair market value of $2 million.

The prospectus also qualifies the distribution of rights and warrants to the new Euro-Nevada shareholders. For each common share of Euro-Nevada held, the shareholder will receive 12 rights each to purchase one common share of Euro- Nevada at $1.05 on or before Nov 6 and six warrants each to purchase one common share of Euro-Nevada at a price of $2 on or before Oct 31, 1988.

The company says any shares which are not subscribed for will be purchased by Wood Gundy Inc. and Thomson Kernaghan Co.

The proceeds of the offering will be used to repay funds borrowed to finance the purchase of properties from Franco-Nevada, to conduct furth er exploration work and to acquire royalty interests in other mineral properties.

The common shares, rights and warrants of Euro-Nevada started trading on the Toronto Stock Exchange on when issued basis Oct 9. Following the offering, Euro- Nevada will have approximately 7.2 million shares outstanding plus warrants to buy an additional 2.9 million shares.