Buenaventura Announces Closing of Transaction to Divest Its Chaupiloma Royalty Company to Franco-Nevada for $210 Million

By Buenaventura

Compañia de Minas Buenaventura S.A.A. (“Buenaventura” or “the Company”) (NYSE: BVN; Lima Stock Exchange: BUE.LM), Peru’s largest publicly-traded precious metals mining company, today announced that it has closed a transaction to sell to a subsidiary of Franco-Nevada Corporation 100% of Chaupiloma Dos de Cajamarca (“Chaupiloma”), Buenaventura’s subsidiary that owns 1.8% net smelter return royalty on all minerals (the “Royalty”) covering Newmont Corporation’s Yanacocha mine and adjacent mineral properties located in Peru.

Under the terms of the definitive agreement, consideration for the Royalty consists of $210 million paid to Buenaventura in cash upon closing and a contingent payment of $15 million in Franco-Nevada common shares, payable upon achievement of certain conditions as described below.

"Today's announcement represents another critical step forward, aligned with our strategic objective of reinforcing Buenaventura’s financial strength to return to leverage levels reflecting our Company’s true operational performance, aligned with our commitment to our shareholders and bondholders,” said Leandro Garcia, CEO of Buenaventura. “This transaction enables Buenaventura to strengthen its financial position, with sale proceeds also directed towards driving further growth, led by progress on our San Gabriel project. Buenaventura’s San Gabriel project achieved 57% progress towards completion by the second quarter’s end, meeting our planned targets. We remain on track to produce our first gold bar by the second half of 2025.”

Transaction Overview:

• $210 million in cash was paid to Buenaventura and its affiliate on closing, whereby a wholly-owned subsidiary of Franco-Nevada acquired their Peruvian subsidiary Chaupiloma Dos De Cajamarca, which holds the Royalty.
• A contingent payment of 118,534 common shares of Franco-Nevada, representing $15 million as of signing, will be payable to Buenaventura and its affiliate upon the Conga project, a project of Minera Yanacocha which is primarily owned by Newmont Mining Corporation, achieving commercial production for a full year before the twentieth anniversary of closing.
• Buenaventura and its affiliate are entitled to receive a variable price equivalent to payments received by Chaupiloma for the Conga Royalty and two additional royalties.