UPDATE 1-Franco-Nevada, Teck Resources reach streaming deal for Antamina mine
(Adds details from statement)
Oct 7 (Reuters) - Franco-Nevada Corp said it agreed to pay Teck Resources Ltd $610 million to help fund operations at the Antamina mine in Peru in exchange for a share of silver production.
In so-called "streaming" transactions, a streaming company such as Franco-Nevada provides a miner with funds upfront in exchange for a portion of future production at a set price.
Gold-focused royalty and stream company Franco-Nevada will also pay 5 percent of the spot silver price for each ounce of silver delivered under the stream.
Franco-Nevada expects 900,000 ounces to 1.1 million ounces of silver from the Antamina mine in the fourth quarter.
Teck operates the Antamina mine along with joint venture partners BHP Billiton Plc, Glencore Plc and Mitsubishi Corp.
The deal comes in two days after Franco-Nevada revised its deal with First Quantum Minerals Ltd for a copper-gold Cobre Panama project in Central America. (Reporting by Anannya Pramanick in Bengaluru; Editing by Shounak Dasgupta)
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