Continental Resources Inc., Oklahoma City, has formed a minerals subsidiary with Franco-Nevada Corp., Toronto, to acquire additional minerals in the SCOOP and STACK plays of Oklahoma, primarily in areas operated by Continental. Franco-Nevada will pay $220 million for its initial interest. The companies will spend up to a combined $125 million/year over the next 3 years for additional acquisitions.
Continental will fund 20% of future mineral acquisitions and earn 25-50% of total revenues generated by the new venture based on certain targets.
Franco-Nevada is a gold-focused royalty and stream company with a current market capitalization of $14 billion. The company aims to to have 80% of its business in precious metals and up to 20% of its business in nonprecious resources including oil and gas.
