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TORONTO, Oct. 23 /CNW/ - Franco-Nevada Corporation ("Franco-Nevada")
announced today that it has filed a preliminary prospectus with the securities
regulatory authorities in each of the provinces and territories of Canada in
connection with a possible initial public offering of its common shares. The
proceeds of the offering would be utilized to acquire the royalty assets and
certain other investments of Newmont Mining Corporation (NYSE: NEM) ("Newmont")
if Newmont chooses to sell those assets and investments to Franco-Nevada.
Earlier this year, Newmont announced plans to monetize components of its
royalty and equity portfolio to fund the development of its core gold
business, resulting in the discontinuation of Newmont's Merchant Banking
Segment as a separate business unit. Newmont is evaluating alternatives to
maximize the realized value of the discontinued Merchant Banking portfolio
assets, including a possible public offering or private sales transactions.
Franco-Nevada is being formed as a resource sector royalty and investment
company that would acquire from Newmont components of its mining and oil & gas
royalty and equity portfolio if Newmont chooses to realize the value of those
assets through an initial public offering.
The management team of Franco-Nevada would be formed primarily from
current employees of Newmont's Merchant Banking Segment, including David
Harquail as Chief Executive Officer and a Director. The Board of Directors of
Franco-Nevada would be led by Pierre Lassonde as Chairman, with Graham
Farquharson, Louis Gignac, Randall Oliphant and David Peterson also expected
to serve on the Board.
BMO Capital Markets and UBS Securities were selected to serve as co-lead
underwriters and joint bookrunners. If the offering is pursued, its details
are expected to be determined in late 2007 or early 2008.
A copy of the preliminary prospectus that has been filed with the
Canadian securities regulators is available at www.sedar.com.
The securities referenced by this news release have not been and will not
be registered under the United States Securities Act of 1933, as amended, and
may not be offered or sold in the United States absent registration or
applicable exemption from registration requirements. This news release does
not constitute an offer to sell or the solicitation of an offer to buy common
shares of Franco-Nevada Corporation in any jurisdiction.
All statements, other than statements of historical fact, in this news
release are forward-looking statements that involve various risks and
uncertainties, including, without limitation, statements regarding the future
plans and objectives of Franco-Nevada and Newmont. Actual results and future
events could differ materially from those anticipated in such statements.
Newmont and Franco-Nevada assume no obligation to update forward-looking
statements should circumstances or management's estimates or opinions change.
For further information:
For further information: David Harquail, Chief Executive Officer, (416)
480-6480; Paul Brink, Chief Financial Officer, (416) 480-6480