Royal Gold Announces Completion of Additional Gold Stream Interest at Mt. Milligan
Royal Gold, Inc. (NASDAQ:RGLD)(TSX:RGL) today announced the
closing of the acquisition, through its wholly-owned subsidiary RGLD
Gold AG, of an additional 12.25% of the payable gold produced from the
Mt. Milligan copper-gold project, located in British Columbia, from a
subsidiary of Thompson Creek Metals Company, Inc. ('Thompson Creek?)
(NYSE:TC; TSX:TCM). Consideration for the new transaction was $200
million and cash payments equal to the lesser of $435 or the prevailing
market price for each payable ounce of gold delivered to Royal Gold (the
'Delivery Payments?).
Combined with the prior transactions completed in July 2010 and December
2011, Royal Gold is now entitled to 52.25% of the payable gold produced
from Mt. Milligan for total consideration of $781.5 million and the
Delivery Payments. Once the $75.0 million is paid in connection with
today′s closing, Royal Gold will have paid approximately $529.6 million
to Thompson Creek. The remaining $251.9 million will be paid in five
scheduled quarterly payments commencing on September 1, 2012 and ending
on September 1, 2013.
The Mt. Milligan project is in an advanced stage of construction, and
Thompson Creek estimates that commercial production will commence in
late calendar 2013. Thompson Creek also reported that as of June 30,
2012, progress is 99% complete for project engineering, 94% complete for
procurement, 51% complete for construction, and overall progress is at
69%.
Royal Gold is a precious metals royalty company engaged in the
acquisition and management of precious metal royalty and similar
production based interests. The Company owns interests on 193 properties
on six continents, including interests on 39 producing mines and 26
development stage projects. Royal Gold is publicly traded on the NASDAQ
Global Select Market under the symbol 'RGLD? and on the Toronto Stock
Exchange under the symbol 'RGL.? The Company′s website is located at www.royalgold.com.
Cautionary 'Safe Harbor? Statement Under the Private Securities
Litigation Reform Act of 1995: With the exception of historical matters,
the matters discussed in this press release are forward-looking
statements that involve risks and uncertainties that could cause actual
results to differ materially from projections or estimates contained
herein. Such forward-looking statements include the operator′s estimated
date for initial production. Factors that could cause actual results to
differ materially from projections include, among others, precious
metals prices, the risks inherent in construction, development and ramp
up of operations of a new mine at Mt. Milligan by an operator who has
not previously operated gold mines, decisions and activities of the
operator of the various properties, unanticipated grade, geological,
metallurgical, processing or other problems the operator may encounter,
changes in project parameters as plans continue to be refined, economic
and market conditions, operations in land subject to First Nations
jurisdiction in Canada, as well as other factors described elsewhere in
this press release and in our Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q, and other filings with the Securities and Exchange
Commission. In addition, acquired royalty interests on certain projects
are subject to risks associated with conducting business in a foreign
country, including application of foreign laws to contract and other
disputes, foreign environmental laws and enforcement and uncertain
political and economic environments. Most of these factors are beyond
the Company′s ability to predict or control. The Company disclaims any
obligation to update any forward-looking statement made herein. Readers
are cautioned not to put undue reliance on forward-looking statements.
Royal Gold
Karen Gross, 303-575-6504
Vice President and
Corporate Secretary