Continental Resources Inc. (NYSE: CLR) said Aug. 6 it is teaming up with Franco-Nevada Corp. (NYSE: FNV) to acquire mineral interests in Oklahoma's Scoop and Stack shale plays.

As part of the agreement, Franco-Nevada will pay Continental about $220 million for a stake in a newly-formed minerals subsidiary. Continental said it expects proceeds will help offset the majority of previously incurred capex.

In addition, the companies have also committed to spending up to a combined $125 million per year over the next three years to acquire additional minerals through the minerals subsidiary.

Harold Hamm, chairman and CEO of Continental, said the partnership is "yet another growth vehicle" and will complement the company's existing assets while also paying down debt.

"We could not be more pleased to team up with a leading royalty corporation in Franco-Nevada, who has a vast understanding of the value of mineral ownership as evidenced by their long track-record of acquiring assets globally," Hamm said in a statement.

Based in Toronto, Canada, Franco-Nevada targets to have 80% of its business in precious metals and up to 20% of its business in non-precious resources including oil and gas. The company's current market cap is about $14 billion, according to the company press release.

With a carry component on capital acquisition costs, Continental plans to fund 20% of future mineral acquisitions through its partnership with Franco-Nevada. Continental will be entitled to between 25% and 50% of total revenues generated by the minerals subsidiary based upon performance relative to certain predetermined targets.

RBC Capital Markets was exclusive financial adviser to Continental for the transaction and Vinson & Elkins LLP was the company's exclusive legal adviser.