Royal Gold Sells Royalty at Carmen de Andacollo
July 09 2015 - 4:30PM
Business Wire
Royal Gold, Inc. (NASDAQ:RGLD; TSX: RGL) (“RGI”)
announces that its wholly owned subsidiary Royal Gold Chile
Limitada (“Royal Gold” or the “Company”) entered into a Royalty
Termination Agreement (“Agreement”) with Compañía Minera Teck
Carmen de Andacollo (“CMCA”), a 90% owned subsidiary of Teck
Resources Limited.
The Agreement terminates Royal Gold’s royalty equivalent to 75%
of the gold produced from the sulfide portion of the Carmen de
Andacollo mine until 910,000 payable ounces have been produced, and
50% of the gold produced thereafter. Approximately 248,000 ounces
of payable gold subject to the royalty have been produced through
March 31, 2015, resulting in approximately 662,000 payable ounces
remaining as of that date, before the step down to the 50% royalty
rate.
Details of the Agreement
- CMCA paid total consideration of $345
million to Royal Gold
- The sale will be taxable to Royal Gold
with net proceeds estimated at approximately $300 million
- Royal Gold will receive payment for the
royalty through June 30, 2015, the economic effective date of the
sale
- In addition to the $345 million
termination payment, a post-closing final royalty payment of
approximately $9 million is expected in mid-July to finalize all
outstanding shipments for which final settlements had not been
received as of July 1, 2015
Corporate Profile
Royal Gold, Inc. is a precious metals royalty and stream company
engaged in the acquisition and management of precious metal
royalties, streams, and similar production based interests. RGI
owns interests on 196 properties on six continents, including
interests on 37 producing mines and 24 development stage projects.
Royal Gold, Inc. is publicly traded on the NASDAQ Global Select
Market under the symbol “RGLD,” and on the Toronto Stock Exchange
under the symbol “RGL.” RGI’s website is located at
www.royalgold.com.
About Teck
Teck is a diversified resource company committed to responsible
mining and mineral development with major business units focused on
copper, steelmaking coal, zinc and energy. Headquartered in
Vancouver, Canada, its shares are listed on the Toronto Stock
Exchange under the symbols TCK.A and TCK.B and the New York Stock
Exchange under the symbol TCK.
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 statements about the Company’s royalty on Carmen
de Andacollo, estimated royalty payments, estimated proceeds from
the sale of the royalty and tax treatment of those proceeds.
Factors that could cause actual results to differ materially from
the projections include, among others, precious metals prices;
actual tax rates; performance of and production at the properties
subject to our royalty and stream interests; decisions and
activities of the operators of these properties; operators’ delays
in securing or inability to secure necessary governmental permits;
changes in operators’ project parameters and timelines as plans
continue to be refined; economic and market conditions;
unanticipated grade, geological, metallurgical, processing,
regulatory and legal or other problems that the operators of mining
properties may encounter; completion of feasibility studies; the
ability of the various operators to bring projects into production
as expected; and other subsequent events, as well as other factors
described in RGI's Annual Report on Form 10-K, Quarterly Reports on
Form 10-Q, and other filings with the Securities and Exchange
Commission. Most of these factors are beyond RGI’s ability to
predict or control. RGI disclaims any obligation to update any
forward-looking statement made herein. Readers are cautioned not to
put undue reliance on forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20150709006168/en/
Royal GoldKarli Anderson, 303-575-6517Vice President
Investor Relations
Royal Gold (NASDAQ:RGLD)
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