Canada Pension Plan to invest $450 million in LongPoint Minerals
TORONTO, June 8 (Reuters) - The Canada Pension Plan Investment Board said on Wednesday it will invest $450 million (C$570 million) in LongPoint Minerals, a company that invests in oil and gas mineral and royalty interests in the United States.
CPPIB, which is Canada's biggest public pension fund, said the investment will be deployed over two to three years and will give it a majority stake in Denver-based LongPoint.
LongPoint will acquire oil and natural gas mineral royalty interests in the lower 48 U.S. states, CPPIB said.
Royalty investments see investors provide the initial funding for projects in return for a portion of future revenues.
"In owning royalty interests, we are able to participate in production revenues without the burden of associated capital or operating costs," said Adam Vigna, managing director and head of principal credit investments at CPPIB. (Reporting by Matt Scuffham; Editing by Paul Simao)
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