Franco-Nevada Announces $250 Million Royalty Financing with i-80 Gold

Rhea-AI Summary

Franco-Nevada (TSX: FNV; NYSE: FNV) agreed to acquire a $250 million net smelter return royalty from i-80 Gold to fund a Nevada-focused development plan. The royalty is 1.5% until Jan 1, 2031, then steps to 3.0%, and covers six material projects across a 256 km2 land package.

The deal provides $225M upfront, a $25M contingent payment tied to 2026 Mineral Point spending, and is expected to close in March 2026, subject to customary conditions.

Positive

• $250M royalty financing with $225M upfront
• Royalty covers a 256 km2 Nevada land package
• 7.8 Moz AuEq M&I resources and 8.6 Moz inferred resources covered
• i-80 production plan targets 600+ koz Au annually by 2032+

Negative

• Royalty pays 1.5% until 2031, limiting near-term cash to Franco-Nevada
• Additional $25M payment is contingent on 2026 Mineral Point spending
• Closing is subject to customary conditions; expected in March 2026
• Franco-Nevada will fund from cash on hand, reducing available liquidity

Key Figures

Royalty financing size: $250 million Initial royalty rate: 1.5% Stepped-up royalty rate: 3.0% +5 more

8 metrics

Royalty financing size $250 million Net smelter return royalty with i-80 Gold across Nevada projects

Initial royalty rate 1.5% Net smelter returns until January 1, 2031

Stepped-up royalty rate 3.0% Net smelter returns from January 1, 2031 in perpetuity

Upfront proceeds $225 million Paid to i-80 Gold on closing of the royalty transaction

Conditional payment $25 million Subject to completion of 2026 budgeted spending at Mineral Point

Cash & securities $0.9 billion Cash and equivalents plus marketable securities as of September 30, 2025

Available capital $1.9 billion Total available capital as of September 30, 2025

Mineral Point M&I resources 4.6 Moz AuEq Measured & indicated mineral resources at Mineral Point heap leach

Market Reality Check

Price: $257.70 Vol: Volume 450,916 is below 2...

low vol

$257.70 Last Close

Volume Volume 450,916 is below 20-day average 1,069,294 (relative volume 0.42x). low

Technical Price 257.70 is trading above 200-day MA 192.95, near the 52-week high of 273.56.

Peers on Argus

FNV gained 1.05% while key gold peers were mixed: AU up 0.84%, AEM roughly flat,...

FNV gained 1.05% while key gold peers were mixed: AU up 0.84%, AEM roughly flat, WPM, KGC and B down modestly. This points to a stock-specific move linked to FNV’s new royalty rather than a broad sector rotation.

Historical Context

5 past events · Latest: Jan 28 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 28	Earnings timing update	Neutral	+2.2%	Scheduled year-end 2025 results release and conference call dates.
Jan 26	New gold stream	Positive	+1.4%	Announced <b>$100M</b> Casa Berardi stream financed from cash on hand.
Jan 26	Dividend increase	Positive	+1.4%	Raised quarterly dividend to <b>US$0.44</b>, 19th consecutive annual increase.
Jan 21	ESG recognition	Positive	+2.4%	Named to Corporate Knights’ <b>2026 Global 100</b> sustainability ranking.
Nov 24	Royalty clarification	Positive	+4.5%	Confirmed coverage and contingent payment on Arthur Gold royalty interest.

Pattern Detected

Recent corporate and capital allocation announcements have generally coincided with positive 1-day price reactions.

Recent Company History

Over the past several months, Franco-Nevada has combined portfolio growth with shareholder returns. A $100 million gold stream with Orezone on Casa Berardi and inclusion in the 2026 Global 100 were followed by a 16% dividend increase to US$0.44 per share. An upcoming year-end 2025 results release on March 10 keeps focus on financial performance. Today’s Nevada-focused royalty financing extends this pattern of cash-funded portfolio expansion.

Market Pulse Summary

This announcement adds a $250 million Nevada-focused royalty to Franco-Nevada’s portfolio, starting ...

Analysis

This announcement adds a $250 million Nevada-focused royalty to Franco-Nevada’s portfolio, starting at a 1.5% NSR and stepping to 3.0% from 2031. It builds on recent cash-funded deals, supported by $0.9B in cash and $1.9B in available capital as of September 30, 2025. Investors may track i-80 Gold’s phased production targets and progress at key assets like Mineral Point and Granite Creek.

Key Terms

net smelter return royalty, heap leach, measured and indicated resources, inferred resources, +4 more

8 terms

net smelter return royalty financial

"it has entered into an agreement to acquire a $250 million net smelter return royalty"

A net smelter return (NSR) royalty is a contractual right to receive a percentage of the revenue from minerals sold after they are processed and refined, with common deductions for transportation and refining fees. Investors care because an NSR provides a predictable slice of mining project income without owning the mine, so it affects expected cash flow, risk exposure to commodity prices, and the valuation of both the royalty and the operating project—similar to collecting a portion of rent after paying building maintenance costs.

heap leach technical

"Mineral Point Heap Leach (study), Granite Creek Open Pit (study)"

Heap leach is a mining method where crushed ore is piled into a heap and a liquid is dripped or sprayed over it to dissolve valuable metals, which are then collected from the runoff. Investors care because it is a lower-cost, scalable way to produce metals like gold or copper, but it also affects project timelines, recovery rates, capital needs and environmental or regulatory risk — like choosing a cheap, slow way to extract juice from a fruit versus pressing it quickly.

measured and indicated resources technical

"for 261 koz Au measured and indicated resources and 0.8 Mt at 13.0 g/t"

Measured and indicated resources are two levels of confidence in estimates of a mineral deposit’s size and quality: ‘measured’ is the highest-confidence estimate, while ‘indicated’ is a somewhat less certain but still reliable estimate. Think of measured like ingredients weighed on a kitchen scale and indicated like amounts estimated by eye; together they tell investors how much material is likely present and how predictable future extraction and costs may be, which affects project valuation and risk assessment.

inferred resources technical

"and 3.2 Moz AuEq inferred resources1. Mineral Point is Phase 3"

An inferred resource is an early-stage estimate of how much mineral or fuel may be present in the ground based on limited geological evidence and sampling. Think of it like seeing scattered clues that suggest a buried treasure might exist but not having dug enough to be sure; the potential size and value are uncertain. For investors it signals possible upside but carries high risk and should not be treated as proven supply or relied on for firm production plans.

net smelter returns financial

"Upon closing, 1.5% of net smelter returns on all minerals produced."

A net smelter returns (NSR) royalty is a payment to a rights holder equal to a fixed percentage of the money received from selling mined metals after they have been processed and sold by a smelter or refiner, with standard processing costs deducted. Think of it like a landlord taking a percentage of a tenant’s rent after utilities are paid; for investors, an NSR affects a mine owner’s cash flow, project value, and the amount of profit available to shareholders because it reduces revenue from mineral sales.

autoclave technical

"refurbishment of the Lone Tree Autoclave facility, providing a central processing hub"

A sterilizing chamber that uses high-pressure steam to kill bacteria, viruses and spores on medical instruments, lab glassware and certain manufactured goods—think of it like an industrial pressure cooker that makes tools safe to use. Investors care because autoclaves are critical for regulatory compliance, product safety and facility operations in healthcare, biotech and manufacturing; their presence, capacity and maintenance can affect costs, production timelines and liability risk.

right of first offer financial

"Franco-Nevada will maintain a right of first offer on future streams, royalties"

A right of first offer is a contractual agreement that requires an owner to offer an asset or stake to a designated party before marketing it to others; the holder gets the first chance to negotiate terms directly with the seller. For investors, it matters because it can limit who can buy or set the sale price path—like getting the first invitation to buy a sought-after item before it goes on general sale, protecting potential access or controlling competition.

interest in land regulatory

"The Royalty will be registered on title as an interest in land."

An interest in land is any legal right or claim a person or entity has in a piece of real estate, ranging from full ownership to more limited rights like leases, easements, or mortgages. For investors it matters because these rights determine who can use the property, who receives income from it, and what liabilities or restrictions exist — like holding a concert ticket versus a seat reservation, some interests give full control while others only partial use or payment rights.

AI-generated analysis. Not financial advice.

(in U.S. dollars unless otherwise noted)

TORONTO, Feb. 12, 2026 /PRNewswire/ - Franco-Nevada Corporation ("Franco-Nevada" or the "Company") (TSX: FNV)(NYSE: FNV) is pleased to announce that, through a wholly-owned U.S. subsidiary, it has entered into an agreement to acquire a $250 million net smelter return royalty (the "Royalty") from i-80 Gold Corp. ("i-80 Gold") to support its recapitalization plan and strategy of creating a Nevada-focused mid-tier gold producer. The Royalty rate will initially be 1.5%, increasing to 3.0% beginning in 2031, and will apply to all of i-80 Gold's material properties including their six projects in various stages of development. These projects cover more than 250 km² of prospective ground and include: Granite Creek Underground (operating), Archimedes Underground (development), Mineral Point Heap Leach (study), Granite Creek Open Pit (study), Cove Underground (study), and Lone Tree open pit (study).

i-80 Gold has outlined a three-phase development timeline to put the projects into production, anticipated to increase annual production from 150–200 koz Au in Phase 1 to 600+ koz Au with Phase 3 in 2032+. This financing, together with i-80 Gold's concurrent recapitalization plan, provides substantial capital to develop Phases 1 and 2. See i-80 Gold's press release dated February 12, 2026 for additional details.

"We are pleased to add i-80 Gold's extensive portfolio of assets in Nevada to our U.S. portfolio and to partner with i-80 to advance their development plans," said Paul Brink, President & CEO of Franco-Nevada. "The i-80 team has an excellent track record and we look forward to partnering with them as they unlock what we believe will be one of largest gold operations in Nevada."

Richard Young, President & CEO of i-80 Gold, commented: "We are thrilled to have Franco-Nevada as a partner who shares our long-term vision of advancing our gold portfolio to create a Nevada-focused mid-tier gold producer. With Franco-Nevada providing the foundational capital as part of our recapitalization, we now have a clear and achievable path to over 600,000 ounces of gold production annually by the early 2030s. With additional drilling and optimization work on our large land package, we believe there are opportunities to create further long-term growth and value for all stakeholders."

Transaction Highlights

• Royalty Covers all of i-80 Gold's Growth Plans in Nevada: i-80 Gold is planning an aggressive asset development program that will increase production from 30-40 koz Au in 2025 to more than 600 koz Au per year by 2032 upon completion of all 3 phases of the development plan, delivering a strong growth profile. Phase 1 increases annual gold production to 150-200 koz Au from Granite Creek Underground and Archimedes Underground with processing at the Lone Tree Autoclave in 2028-2029. Phase 2 further increases annual production to 300-400 koz Au commencing in 2030-2031 adding Cove and Granite Creek Open Pit. Finally, Phase 3 in 2032+ adds Mineral Point and increases annual production to 600+ koz Au.
• Comprehensive Financing Plan Unlocks Processing Hub: This financing, alongside the concurrent recapitalization plans at i-80 Gold provides substantial capital to advance Phases 1 and 2, including the refurbishment of the Lone Tree Autoclave facility, providing a central processing hub for the Granite Creek, Archimedes and Cove underground operations.
• Attractive Anchor Project in Mineral Point Heap Leach: Mineral Point is an attractive, large-scale and straight-forward heap leach project hosting 4.6 Moz AuEq M&I mineral resources and 3.2 Moz AuEq inferred resources¹. Mineral Point is Phase 3 of i-80 Gold's plan, with potential to accelerate the feasibility study and permitting work with part of the Royalty financing tied to Mineral Point technical and permitting work. Mineral Point is expected to produce 282 koz AuEq per year once in production.
• Royalty Rate Step-up: The Royalty has been designed to maximise cash flow available to i-80 Gold during the capital intensive phase of asset development. The Royalty rate will be 1.5% until January 1, 2031 and thereafter will be 3%.
• Large Mineral Resource with Exploration Potential: The Royalty will cover a large resource base including Granite Creek, the Ruby Hill Complex (including Archimedes Underground and Mineral Point), Cove and Lone Tree. The 256 km² land package in Nevada hosts a substantial mineral base of 7.8 Moz AuEq M&I mineral resources and 8.6 Moz AuEq inferred mineral resources¹.
• Experienced Management Team: i-80 Gold is led by Richard Young, who has over 30 years of experience in the resource industry. Richard played a key role in Teranga Gold's transformation from a single asset producer into a successful low-cost, mid-tier gold producer and Richard most recently served as President and CEO of Argonaut Gold that was acquired by Alamos Gold Inc. i-80 Gold operations are led by Paul Chawrun who has over 30 years of experience permitting, building and operating gold mines globally, most recently as COO and EVP of Centerra Gold and previously as COO of Teranga Gold. Further, the i-80 Gold leadership team holds extensive Nevada mining experience in operations, processing, permitting, and stakeholder relations.
• Gold Focused Royalty in Nevada: The Royalty financing increases our long-term gold exposure in Nevada, where our royalty coverage already extends to Goldstrike, Gold Quarry, Arthur, Marigold, Bald Mountain, South Arturo and numerous other properties.

Royalty Key Terms

• Upfront proceeds of $225M upon closing, with a further $25M payment subject to completion of 2026 budgeted spending at Mineral Point.
• Upon closing, 1.5% of net smelter returns on all minerals produced. Beginning January 1, 2031, the Royalty rate will increase to 3.0% of net smelter returns in perpetuity.
• The Royalty will apply to all material properties in i-80 Gold's portfolio, including Granite Creek, Cove, the Ruby Hill Complex and Lone Tree, including after-acquired properties within a 1-mile area of interest.
• The Royalty will be registered on title as an interest in land.

Additional Considerations

• Franco-Nevada will maintain a right of first offer on future streams, royalties and similar interests related to i-80 Gold's assets.
• Franco-Nevada will partner with i-80 Gold on environmental and social initiatives in Nevada.
• Closing of the transaction is subject to customary conditions and is expected to occur in March 2026.

Financing the Transaction

Franco-Nevada intends to finance the transaction from cash on hand. The Company had $0.9B in cash and cash equivalents and marketable securities and $1.9B in available capital as at September 30, 2025.

Franco-Nevada Corporate Summary

Franco-Nevada Corporation is the leading gold-focused royalty and streaming company with the largest and most diversified portfolio of cash-flow producing assets. Its business model provides investors with gold price and exploration optionality while limiting exposure to cost inflation. Franco-Nevada is debt-free and uses its free cash flow to expand its portfolio and pay dividends. It trades under the symbol FNV on both the Toronto and New York stock exchanges. Franco-Nevada is the gold investment that works.

________________________________________

1 Total resources converted into gold equivalent at long term prices of $3,302/oz Au and $40.31/oz Ag. Total resources include the following:

Granite Creek Underground – 0.8 Mt at 10.5 g/t Au for 261 koz Au measured and indicated resources and 0.8 Mt at 13.0 g/t Au for 326 koz Au inferred resources.

Granite Creek Open Pit – 37.7 Mt at 1.2 g/t Au for 1,435 koz Au measured and indicated resources and 2.1 Mt at 1.1 g/t Au for 75 koz Au inferred resources.

Ruby Hill – Archimedes Underground – 1.8 Mt at 7.6 g/t Au and 1.6 g/t Ag for 436 koz Au and 92 koz Ag indicated resources and 4.2 Mt at 7.3g/t Au and 2.1 g/t Ag for 988 koz Au and 286 koz Ag inferred resources.

Ruby Hill – Mineral Point Open Pit – 217 Mt at 0.5 g/t Au and 15.0 g/t Ag for 3,376 koz Au and 104,332 koz Ag indicated resources and 194 Mt at 0.3 g/t Au and 14.6 g/t Ag for 2,117 koz Au and 91,473 koz Ag inferred resources.

Ruby Hill – Archimedes Open Pit – 4.3 Mt at 2.0 g/t Au and 10.6 g/t Ag for 272 koz Au and 1,490 koz Ag indicated resources and 0.9 Mt at 1.1 g/t Au and 8.5 g/t Ag for 31 koz Au and 250 koz Ag inferred resources.

Cove – 1.2 Mt at 8.2 g/t Au and 15.0 g/t Ag for 310 koz Au and 568 koz Ag indicated resources and 4.0 Mt at 8.9 g/t Au and 11.1 g/t Ag for 1,156 koz Au and 1,439 koz Ag inferred resources.

Lone Tree – 7.7 Mt at 1.7 g/t Au for 428 koz Au indicated resources and 52.9 Mt at 1.6 g/t Au for 2,789 koz Au inferred resources.

About i-80 Gold Corp.

i-80 Gold Corp. is a Nevada-focused mining company committed to building a mid-tier gold producer through a new development plan to advance its high-quality asset portfolio. i-80 Gold is the fourth largest gold mineral resource holder in the state with a pipeline of high-grade multi-stage projects strategically located in Nevada's most prolific gold-producing trends. Leveraging its central processing facility following an anticipated refurbishment, i-80 Gold is executing a hub-and-spoke regional mining and processing strategy to maximize efficiency and growth. i-80 Gold's shares are listed on the Toronto Stock Exchange (TSX:IAU) and the NYSE American (NYSE:IAUX). For more information, visit www.i80gold.com.

Additional Information

i-80 Gold's head office is located at 5190 Neil Road, Suite 460, Reno, Nevada 89502 and its principal executive office is located in 150 York Street – Suite 1802, Toronto, Ontario M5H 3S5. Franco-Nevada's head and registered office is located at 2000-199 Bay Street, Commerce Court West, Toronto, Ontario, M5L 1G9.

Information relating to the i-80 Gold's assets contained in this news release has been provided by i-80 Gold.

Scientific and technical information included in this news release has been reviewed by Darrol van Deventer, Vice President, Mining of Franco-Nevada, a qualified person under National Instrument 43-101.

Forward-Looking Statements

This press release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities laws and the United States Private Securities Litigation Reform Act of 1995, respectively, which may include, but are not limited to, statements with respect to future events or future performance, including the expected timing of closing the transaction, the expected future performance of i-80 Gold's assets and the Royalty, and production and mine life estimates relating to the i-80 Gold's assets. In addition, statements relating to mineral resources and mineral reserves, gold equivalent ounces ("GEOs") and mine life are forward-looking statements, as they involve implied assessment, based on certain estimates and assumptions, and no assurance can be given that the estimates and assumptions are accurate and that such mineral resources and mineral reserves, GEOs or mine life will be realized. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budgets", "potential for", "scheduled", "estimates", "forecasts", "predicts", "projects", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Franco-Nevada to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. A number of factors could cause actual events or results to differ materially from any forward-looking statement, including, without limitation: fluctuations in the prices of the primary commodities that drive royalty and stream revenue (gold, platinum group metals, copper, nickel, uranium, silver, iron ore and oil and gas); fluctuations in the value of the Canadian and Australian dollar, Mexican peso, and any other currency in which revenue is generated, relative to the U.S. dollar; changes in national and local government legislation, including permitting and licensing regimes and taxation policies and the enforcement thereof; proposed tariff and other trade measures that may be imposed by the United States and proposed retaliatory measures that may be adopted by its trading partners; the adoption of a global minimum tax on corporations; regulatory, political or economic developments in any of the countries where properties in which Franco-Nevada holds a royalty, stream or other interest are located or through which they are held; risks related to the operators of the properties in which Franco-Nevada holds a royalty, stream or other interest, including changes in the ownership and control of such operators; relinquishment or sale of mineral properties; influence of macroeconomic developments; business opportunities that become available to, or are pursued by Franco-Nevada; reduced access to debt and equity capital; litigation; title, permit or license disputes related to interests on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; whether or not the Company is determined to have "passive foreign investment company" ("PFIC") status as defined in Section 1297 of the United States Internal Revenue Code of 1986, as amended; potential changes in Canadian tax treatment of offshore streams; excessive cost escalation as well as development, permitting, infrastructure, operating or technical difficulties on any of the properties in which Franco-Nevada holds a royalty, stream or other interest; access to sufficient pipeline capacity; actual mineral content may differ from the mineral resources and mineral reserves contained in technical reports; rate and timing of production differences from resource estimates, other technical reports and mine plans; risks and hazards associated with the business of development and mining on any of the properties in which Franco-Nevada holds a royalty, stream or other interest, including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, sinkholes, flooding and other natural disasters, terrorism, civil unrest or an outbreak of contagious disease; the impact of future pandemics; and the integration of acquired assets. The forward-looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the ongoing operation of the properties in which Franco-Nevada holds a royalty, stream or other interest by the owners or operators of such properties in a manner consistent with past practice; the accuracy of public statements and disclosures made by the owners or operators of such underlying properties; no material adverse change in the market price of the commodities that underlie the asset portfolio; the Company's ongoing income and assets relating to determination of its PFIC status; no material changes to existing tax treatment; the expected application of tax laws and regulations by taxation authorities; the expected assessment and outcome of any audit by any taxation authority; no adverse development in respect of any significant property in which Franco-Nevada holds a royalty, stream or other interest; the accuracy of publicly disclosed expectations for the development of underlying properties that are not yet in production; integration of acquired assets; and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended. However, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Investors are cautioned that forward-looking statements are not guarantees of future performance. In addition, there can be no assurance as to (i) the outcome of any ongoing or future audits by the CRA or the Company's exposure as a result thereof, or (ii) the future status and any potential restart of the Cobre Panama mine or the outcome of any related arbitration proceedings. Franco-Nevada cannot assure investors that actual results will be consistent with these forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements due to the inherent uncertainty therein. 

For additional information with respect to risks, uncertainties and assumptions, please refer to Franco-Nevada's most recent Annual Information Form as well as Franco-Nevada's most recent Management's Discussion and Analysis filed with the Canadian securities regulatory authorities on www.sedarplus.com and Franco-Nevada's most recent Annual Report filed on Form 40-F filed with the SEC on www.sec.gov. The forward-looking statements herein are made as of the date of this press release only and Franco-Nevada does not assume any obligation to update or revise them to reflect new information, estimates or opinions, future events or results or otherwise, except as required by applicable law.

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SOURCE Franco-Nevada Corporation

FAQ

What are the key terms of Franco-Nevada's $250 million royalty with i-80 Gold (FNV)?

The agreement is a $250M net smelter return royalty with $225M upfront and $25M contingent. According to the company, the royalty applies to i-80 Gold's material Nevada properties, is registered on title, and includes a right of first offer on future similar interests.

When does the Franco-Nevada (FNV) royalty rate increase and what is the step-up?

The Royalty rate stays at 1.5% until January 1, 2031, then increases to 3.0%. According to the company, the step-up is designed to support i-80 Gold during capital-intensive development and increase Franco-Nevada's long-term gold exposure in Nevada.

How does the i-80 Gold production timeline link to the Franco-Nevada (FNV) financing?

i-80 plans a three-phase build to raise production from 150–200 koz in Phase 1 to 600+ koz by 2032. According to the company, the financing plus recapitalization funds Phases 1–2 and Lone Tree autoclave refurbishment as a processing hub.

When is the Franco-Nevada (FNV) and i-80 Gold transaction expected to close?

Closing is expected in March 2026, subject to customary conditions. According to the company, the upfront $225M is payable at closing, with a further $25M conditional on completion of 2026 Mineral Point spending.

How will Franco-Nevada (FNV) finance the $250M royalty purchase?

Franco-Nevada intends to fund the transaction from cash on hand. According to the company, as of September 30, 2025 it held $0.9B in cash and marketable securities and $1.9B in available capital.