Good morning. A strategic fit doesn’t always lead to another bid.
This partial scan covers disclosures from September 13 at 7:31 a.m. to September 14 at 6:32 a.m., Toronto time.
Element leaves the bidding
TSX-listed Element said Sunday evening it had withdrawn from the FleetPartners sale process and would not submit a revised proposal. After its Phase 1 review, the company still saw strategic merit in combining the businesses. But it said the risk-adjusted return didn’t justify continuing in an increasingly competitive process.
Element’s distinction is useful: liking the combination and continuing to bid were separate decisions.
Franco-Nevada separates royalty and equity funding
Franco-Nevada’s Sunday announcement sets out an A$170 million payment at closing for an additional royalty over Minerals 260’s Bullabulling gold project in Western Australia. The Toronto-headquartered company’s Australian subsidiary would acquire an additional 1.45% gross royalty, bringing its effective gross royalty to 3.90%.
Franco-Nevada also agreed to an A$30 million lead order in a future Minerals 260 equity financing. Together, that is a new A$200 million package—with a royalty payment at closing and a share raise still ahead, rather than A$200 million already advanced.
Blue Moon’s prepayment comes in stages
Blue Moon (TSXV-listed), The Elmet Group and EQ announced Monday a binding letter dated September 11 for transactions at Springer in Nevada. A contemplated US$50 million tungsten prepayment facility would arrive in two US$25 million tranches.
The first would be funded at facility closing, expected within 45 days of Monday’s announcement. The second depends on satisfactory completion of agreed construction/readiness milestones. Repayment would use a 25% credit against sales of Springer concentrate.
Completion still needs required definitive agreements, regulatory and TSXV approvals, and acceptable due diligence for non-equity components. The proposed structure connects funding to milestones and repayment to concentrate sales; the binding letter does not put the cash in hand.
Watch: Scotiabank’s five-year commitment
Scotiabank launched its Scotia Growth Institute on Monday alongside financing, underwriting and investment intended to be available for Canadian companies and projects over five years. The bank says its focus includes sectors and projects identified through the federal Major Projects Office. This is a financing channel to watch, not an announcement that named projects have received funds.
For information and education, not advice for a specific transaction or a prediction of value.
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