News: BHP UPDATE 1-Franco-Nevada and Osisko to provide $750 million for SolGold's Ecuador project

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July 15 (Reuters) - Canadian firms Franco-Nevada FNV.TO and Osisko Gold Royalties OR.TO will invest $750 million in SolGold's SOLG.L SOLG.TO under-development Cascabel gold and copper project in Ecuador in exchange for a portion of the gold produced from the mine, the companies said on Monday.

The funding will be provided in two phases, with the first $100 million allowing SolGold to conduct feasibility studies and secure the necessary permits to make a final investment decision on the project, which is expected to cost $1.55 billion to build.

The remaining $650 million will fund the construction of the project, located in the northern Ecuadorean province of Imbabura, which is considered a major deposit of gold, copper and silver.

Franco-Nevada and Osisko would provide 70% and 30% of the total investment, respectively.

The companies will receive a combined 20% of the recovered gold until SolGold has provided 750,000 ounces of gold.

Following this milestone, the percentage will reduce to 12% for the life of the mine, SolGold said.

In June, Ecuador signed a contract with SolGold for the development of the project, which is expected to generate an investment of over $4.2 billion during its 28 years of operation, according to Ecuador's energy ministry.

Australia's BHP Group (BHP) , Gold miner Newmont NEM.N through Newcrest and China's Jiangxi Copper 600362.SS own stakes in SolGold, according to LSEG data.