Scottie Resources Agrees C$8.1 Million Financing From Franco-Nevada

By Robb M. Stewart

Scottie Resources has agreed to sell a production royalty to Franco-Nevada as part of a financing arrangement with the larger mining company.

Scottie, which owns mineral claims British Columbia's resource-rich Golden Triangle area,

said Tuesday it will sell a 2% gross production royalty for 8.1 million Canadian dollars ($6 million), which will apply to all minerals produced on claims in the Stewart Mining Camp.

Franco-Nevada also agreed to buy shares of Scottie, covering the entire back end of a total C$1.5 million private placement at a price to flow-through subscribers of C$0.275 a share.

The company said that alongside the funding from Franco-Nevada and proceeds of around C$3.6 million raised at its January private placement it was in a strong financial position for future operations.

"This transaction validates the progress we've made and recognizes the value opportunity present at Scottie," Chief Executive Brad Rourke said.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

April 02, 2024 08:07 ET (12:07 GMT)

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