Underwriters
of Franco-Nevada's Initial Public Offering
Exercise Balance of Over-Allotment
Option
NOT FOR DISTRIBUTION TO US
NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Toronto,
CANADA, December 31, 2007 – Franco-Nevada Corporation (“Franco-Nevada” or the
“Company”) (TSX:FNV) announced today that the underwriters of the Company’s recent Initial Public Offering, which
closed on December 20, 2007, have exercised the remaining portion of their
over-allotment option and have completed the sale of the shares thereunder. This brings the total amount of shares
issued pursuant to the offering to 82.8 million and the total amount of shares
the Company has outstanding to 88.8 million. The offering was underwritten by a
syndicate led by BMO Capital Markets and UBS Securities.
Under the
terms of the over-allotment option, the underwriters have acquired a further
three million common shares of Franco-Nevada, with resulting net proceeds to the
Company of approximately $43.6 million. Franco-Nevada intends to use approximately $33
million of the net proceeds to repay, in full, funds drawn under its revolving credit
facility. This leaves the Company with no debt and approximately $10.6 million
in cash to be used for working capital.
About
Franco-Nevada
Franco-Nevada Corporation (FNV) is a TSX listed resource sector royalty
and investment company. The Company owns a diversified portfolio of precious and base metal royalties, oil and natural gas royalties and other
interests. The portfolio includes assets in production, under development or in
the exploration phase mostly located in geopolitically secure countries. Franco-Nevada intends to use its free cash flow to further expand its portfolio
in the resource sector and to pay dividends.
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 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.
Forward-Looking Statements
This news release contains forward-looking
statements, including “forward-looking statements” within the meaning of
applicable Canadian and United States securities laws. Such forward-looking
statements include, without limitation, statements regarding the use of proceeds
of the transaction. Where statements by Franco-Nevada express or imply an
expectation or belief as to future events or results, such expectation or belief
is expressed in good faith and believed to have a reasonable basis. However,
forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future
results expressed, projected or implied by such forward-looking statements all
as may be set out under the headings
“Forward Looking Statements” and “Risk Factors” in the prospectus
pursuant to which the common shares of the Company have been issued and
elsewhere in the Company’s documents filed from time to time with the Toronto
Stock Exchange and Canadian securities regulators. Franco-Nevada expressly disclaims any
obligation to release publicly revisions to any forward-looking statement to
reflect events or circumstances after the date of this news release, or to
reflect the occurrence of unanticipated events, except as may be required under
applicable securities laws. Additionally, Franco-Nevada expressly disclaims any
obligation to comment on expectations of, or comments made by, third parties in
respect of the possible transaction.
Further information on the Company is provided on its website www.franco-nevada.com, or
please contact:
Philip
Koven
(416)
447-4740 EXT. 235