Peru’s Buenaventura sells Chaupiloma subsidiary to Franco-Nevada Corporation

Chaupiloma 1.8% net smelter return royalty on all minerals (the “Royalty”) covering Newmont Corporation’s Yanacocha mine and adjacent mineral properties located in Peru.

The transaction was valued at $210 million and was paid in cash, in addition to a contingent payment of $15 million in Franco-Nevada common shares, and which is payable on the completion of certain conditions.

The transaction "represents another critical step forward, aligned with our strategic objective of reinforcing Buenaventura’s financial strength to return to leverage levels reflecting our Company’s true operational performance, aligned with our commitment to our shareholders and bond holders,” said Leandro Garcia, CEO of Buenaventura, in a company filing.

“This transaction enables Buenaventura to strengthen its financial position, with sale proceeds also directed towards driving further growth, led by progress on our San Gabriel project. Buenaventura’s San Gabriel project achieved 57% overall progress towards completion by second quarter’s end, meeting our planned targets. We remain on track to reach our goal of producing our first gold bar by the second half of 2025.”

Peruvian law firm GSA Legal acted as counsel to Buenaventura, with a team led by partners Luis Gastañeta and Alfonso Tola. The company was advised on tax matters relating to the transaction by Phillipi Prietocarrizosa Ferrero DU & Uría (PPU), with a team led by Milagros Pastor.

Buenaventura was also advised by its general counsel Gulmara La Rosa and senior attorney Rodrigo Vargas.

Franco-Nevada was advised on the transaction by Payet Rey Cauvi Pérez, with a team led by Cecilia González. The firm was advised in Canada by law firm Torys.