Franco-Nevada Corporation (FNV) said that it has completed the earlier announced public offering of 8,375,000 common shares at a price of $59.75 per share.
The proceeds realized from the sale amounted to roughly $500 million. The company intends to utilize the proceeds to fund royalty and stream acquisitions and other general corporate purposes.
Franco-Nevada’s shares fell around 4.6% to close at $55.43 last Thursday.
Franco-Nevada also gave underwriters of the offering an over-allotment option to purchase up to an additional 1,256,250 common shares within 30 days of the closing of the offering. The company entered into an agreement with a syndicate of underwriters, led by RBC Capital Markets, CIBC and BMO Capital Markets who purchased the offered shares on a bought deal basis.
Franco-Nevada operates as a gold-focused royalty and stream company with additional interests in platinum group metals, oil and gas and other resource properties.
Franco-Nevada continues to benefit from its expansions and exploration discoveries made by operators or developers. Recently, the company together with Sandstorm Gold Ltd. (SAND) inked an agreement with True Gold Mining Inc. to finance the construction of the Karma project. Per the deal, the companies will invest $120 million in the project located in Burkina Faso, West Africa. True Gold expects first gold pour at Karma by the end of 2015.
Franco-Nevada currently holds a Zacks Rank #3 (Hold).
Better-ranked companies in the mining space worth considering include Silver Standard Resources Inc. (SSRI) and Harmony Gold Mining Company Ltd. (HMY). While Silver Standard holds a Zacks Rank #1 (Strong Buy), Harmony Gold retains a Zacks Rank #2 (Buy).