Franco Nevada, Sandstorm Gold team up for financing deal

|By:, SA News Editor

Franco-Nevada (NYSE:FNV) and Sandstorm Gold (NYSEMKT:SAND) said this week that they will jointly provide at least $100M to True Gold Mining for the company’s Karma gold project in Burkina Faso.

The transaction includes a fixed repayment in gold and a long-term streaming agreement in which the royalty companies will acquire a portion of the gold from Karma.

It is a relatively small deal, but insiders say it provides a glimpse of how the business is rapidly changing as royalty deals start to resemble more conventional project financing.