Franco-Nevada has agreed to acquire a silver stream on production from the Compania Miñera Antamina (CMA) owned Antamina copper mine in Peru as part of a $610m deal with Teck Resources.

Teck owns a 22.50% interest in CMA, along with partners BHP Billiton (33.75%), Glencore (33.75%) and Mitsubishi (10%).

Franco-Nevada president and CEO David Harquail said: "Franco-Nevada is pleased to partner with Teck on the Antamina mine to create our first pure silver stream.

"This further strengthens and diversifies our portfolio with a proven, long-life, high-margin asset that will be immediately accretive."

Antamina began operations in 2001, and contains total measured and indicated resources of 1.1 billion tonnes of ore and inferred resources of 1.3 billion tonnes of ore.

The Antamina partners have invested more than $6.5bn to date in constructing and expanding the mine, as well as infrastructure.

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The mine’s first silver delivery is expected in the fourth quarter.

"Franco-Nevada is expected to receive between 900,000oz and 1,100,000oz of silver during the initial quarter."

Upon completion, Franco-Nevada is expected to receive between 900,000oz and 1,100,000oz of silver during the initial quarter.

Total reserves at Antamina mine are 647 million tonnes of ore, which are currently constrained by tailings disposal capacity.

CMA is currently considering options for storing additional tailings and alternative mine plans that could result in significant mine life extensions.

Antamina mine is an open pit operation processing about 150,000t per day using conventional flotation, located in the Peruvian Andes 270km north-east of Lima.

In 2014, the mine produced approximately 345,000t of copper, 211,000t of zinc, 3.1 million pounds of molybdenum, and 12 million ounces of silver.

Image: The tailings pond of the Antamina Tailings Dam at the Atamina Dam in Peru. Photo: courtesy of Xtremizta.