Kenorland Minerals Ltd.'s shareholders sell 12.42% stake to Franco-Nevada for C$22.2M
The 10 million shares came from John Tognetti and Kenorland's chief executive at C$2.22 each; Kenorland issued no new shares in the purchase.
Mara Quinlan
Kenorland Minerals Ltd. CVEKLD OTCMKTSKLDCF said on Monday that Franco-Nevada Corporation TSEFNV NYSEFNV bought 10 million of its shares for C$22.2 million, giving the buyer a 12.42 per cent stake. The purchase announced Oct. 5 transferred 10 million existing shares between investors, leaving Kenorland's outstanding share count unchanged.
Kenorland shares fell 4.7 per cent to C$2.23 at 4 p.m. EDT on Monday on the TSX Venture Exchange, according to the CVEKLD quote on Google Finance. The release was distributed at 4:30 p.m. EDT, after that close, so the decline does not measure the market's response to the announcement.
Franco-Nevada paid C$2.22 per share under private agreements, acquiring 7.95 million shares from John Tognetti and 2.05 million from Kenorland chief executive Zach Flood. Kenorland's separate Oct. 2 top-up issued 45,794 new shares for gross proceeds of C$114,393.41 under existing rights that let two corporate holders maintain their percentage ownership.
That earlier issue was priced at C$2.498 a share. Kenorland's Oct. 2 release put two other corporate investors' holdings at 10.1 and 9.9 per cent, both below Franco-Nevada's newly reported 12.42 per cent stake.
Before the announced purchase, Franco-Nevada owned no Kenorland shares, the Oct. 5 release distributed at 4:30 p.m. EDT said. Tognetti's holding fell from 13.80 per cent to 3.93 per cent, while Flood retained 3,422,888 shares after selling his portion.
Kenorland said both the buyer and Tognetti would file early-warning reports on SEDAR+, without giving a filing date. The separately issued top-up shares carry a statutory hold period until Feb. 2, 2027, according to Kenorland's Oct. 2 release.
“We are pleased to welcome Franco-Nevada, one of the most respected names in royalties and streaming, as a significant shareholder of Kenorland,” Flood said in the release.
Kenorland generates exploration projects in North America and finances much of its early work through partnerships, including option agreements that could become joint ventures. It also holds a four per cent net smelter return royalty on Quebec's Frotet project.
The Frotet project page dates the maiden estimate for the Regnault gold deposit to Dec. 16, 2025, and puts it at 2.55 million inferred ounces. That estimate comprises 14.5 million tonnes grading 5.47 grams per tonne gold.
Kenorland said Franco-Nevada bought the shares for investment purposes and had no current plan to increase or sell the holding. The release said that position could change with market conditions and its investment strategy.
Kenorland shares are next scheduled to trade on the TSX Venture Exchange on Tuesday, Oct. 6, the first session after the release.
