By paying US$5 million, Franco-Nevada Mining (TSE) and Euro-Nevada Mining (TSE) have jointly acquired a 4-9% net smelter return on the Dee mine and 5,000 surrounding acres in northern Nevada.
The royalty was bought from the original owner of the property, which lies two miles northwest of American Barrick Resources’ Meikle mine in the Carlin Trend.
The property is operated by Rayrock Yellowknife Resources (TSE) and contains 900,000 oz. in gold reserves and geological resources. It also contains 14 deep, geophysical structures which are untested.
Dee, which has a 1,250-ton-per-day mill and a daily leach capacity of 2,800 tons, produced 39,000 oz. gold in 1992.
In other news, Franco has entered an agreement with First Marathon Securities, Gordon Capital and Thomson Kernaghan to issue one million special warrants at $75 each. Each special warrant will be convertible into a common share and a purchase warrant for an additional Franco share. The warrant is exercisable for five years at $200 and extendible under certain circumstances for a further five years.
The transaction has yet to be approved by regulators.
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