July 15 (Reuters) - Canadian firms Franco-Nevada ( FNV )

and Osisko Gold Royalties ( OR ) will invest $750

million in SolGold's ( SLGGF ) under-development

Cascabel gold and copper project in Ecuador in exchange for a

portion of the gold produced from the mine, the companies said

on Monday.

The funding will be provided in two phases, with the first

$100 million allowing SolGold ( SLGGF ) to conduct feasibility studies and

secure the necessary permits to make a final investment decision

on the project, which is expected to cost $1.55 billion to

build.

The remaining $650 million will fund the construction of the

project, located in the northern Ecuadorean province of

Imbabura, which is considered a major deposit of gold, copper

and silver.

Franco-Nevada ( FNV ) and Osisko would provide 70% and 30% of

the total investment, respectively.

The companies will receive a combined 20% of the

recovered gold until SolGold ( SLGGF ) has provided 750,000 ounces of

gold.

Following this milestone, the percentage will reduce to 12%

for the life of the mine, SolGold ( SLGGF ) said.

In June, Ecuador signed a contract with SolGold ( SLGGF ) for the

development of the project, which is expected to generate an

investment of over $4.2 billion during its 28 years of

operation, according to Ecuador's energy ministry.

Australia's BHP Group ( BHP ), Gold miner Newmont ( NEM )

through Newcrest and China's Jiangxi Copper

own stakes in SolGold ( SLGGF ), according to LSEG data.