Franco-Nevada exec says deal dead

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Wednesday, Oct. 4, 2000 | 11:14 a.m.

DENVER -- Franco-Nevada Mining Corp.'s planned $3.7 billion merger with South Africa's Gold Fields Ltd. is off.

"At the moment we don't see how we could satisfy the South African government, but anything's possible," Franco-Nevada Co-Chief Executive Seymour Schulich said after his presentation Tuesday at the Denver Gold Group's Mining Investment Forum 2000.

Last month, the South African government effectively blocked the deal, when finance minister Trevor Manuel declined foreign exchange approval for the transaction, saying it didn't have sufficient benefits for South Africa.

Finance ministry approval was needed for the combined entity to have its primary listing on the Toronto Stock Exchange.

Manuel's major objections to the merger were based on the lack of clear balance of payments benefits to South Africa and a further reduction of South Africa's already-declining mining tax base.