Doug Ashbury
Northern News Services

NNSL (Feb 01/99) - Franco-Nevada, the world's largest public gold and precious metals royalty company, has taken a 9.6 per cent stake in Aber Resources Ltd.

"We see this as a vote of confidence from one of the country's most astute investors," Alan Bayless, Aber Resources' investor relations and corporate affairs manager, said.

Bayless said there is no indication of a takeover in the works.

Aber is Rio Tinto's joint-venture partner in the proposed Diavik diamond mine.

Royalty companies offer money to assist in project construction in exchange for a royalty arrangement.

Toronto Stock Exchange-listed Franco-Nevada paid $41 million for 4.4 million Aber shares acquired in November and December.

The company, which bought the shares on the open market, paid an average of $9.35 a share.

Aber traded up 25 cents midday Thursday at $10.60.

The acquisition makes Franco-Nevada Aber's largest shareholder.

Aber directors and management hold 3.5 per cent of Aber's 45.8 million shares outstanding.

Franco-Nevada said in a release it "has acquired its interest for investment purposes and may increase or decrease its interest as appropriate."

TD Evergreen investment analyst Todd Ferguson said Franco-Nevada has a "great track record" of buying low and returning value for their shareholders.

Ferguson also said Franco-Nevada's acquisition takes some of Aber's shares off the market. That means if the diamond company stocks improve, Aber's share price could be pushed up faster.

Franco-Nevada has assets and working interests in Ontario and Nevada gold camps. In Ontario, the company is connected with the Hemlo, Kirkland Lake and Holloway gold camps.

The company's precious metal reserves and resources are estimated at 12.1 million ounces (8.6 million ounces gold and 3.5 million ounces platinum).