04:21 AM EST, 12/19/2024 (MT Newswires) -- Franco-Nevada ( FNV ) said Thursday that its subsidiary has entered into a $500 million precious metals stream agreement with Sibanye-Stillwater.

The company said the agreement covers specific production from Sibanye-Stillwater's Marikana, Rustenburg, and Kroondal mining operations in South Africa's Bushveld Complex.

The agreement also offers immediate cash flow from a diversified production base in South Africa.

The stream area has a mine life extending to 2070, based on current projections, the company said, adding that the effective start date of the stream is Sept. 1, with the $500 million deposit funding expected in the coming weeks, and the first delivery anticipated about 45 days after the transaction closes.

Franco-Nevada ( FNV ) said it will continue to pay Sibanye-Stillwater 5% of the spot price for gold and platinum, with the gold payment increasing to 10% after 237,000 ounces of gold are delivered.

The transaction is subject to customary closing conditions, including South African Reserve Bank approval.