Continental, Franco-Nevada form minerals unit for SCOOP, STACK buys

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.
Aug. 7, 2018

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.

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