In short, the minerals produced from the mine, regardless of who purchases the Debtors’ assets, will continue to be subject to the Royalty. It is for this very reason that Franco-Nevada has a secured claim for the unpaid royalties currently owed to Franco-Nevada and why Franco-Nevada is entitled to payment from the proceeds of the sale of the Debtors’ assets.
III. Conclusion
To be clear, Franco-Nevada does not seek to prevent or even delay the Debtors’ proposed asset sale; it merely seeks to provide
A 5% net return royalty
notice of the Royalty to potential purchasers and to preserve its rights with respect thereto.
In consideration of the foregoing, Franco-Nevada respectfully requests, should the Sale Motion be approved, that the Court require that any notice of sale distributed by the Debtors be required to contain a description of Franco-Nevada’s Royalty sufficient to place potential purchasers on notice of the existence and nature of Royalty. Franco-Nevada further requests such additional relief as the Court deems appropriate under the circumstances.
Dated this 28th day of February, 2013.
Respectfully submitted by:
LIONEL SAWYER & COLLINS
By: /s/ Jennifer A. Smith
Jennifer A. Smith, NBN 610
Laura K. Granier, NBN 7357
Ryan A. Andersen, NBN 12321
1100 Bank of America Plaza
50 West Liberty Street
Reno, Nevada 89501
Attorneys for Franco-Nevada U.S. Corporation
Case 13-50301-mkn Doc 51 Entered 02/28/13 11:41:06 Page 4 of 4
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