Business
Royal Gold Acquires Benso Royalty From FairWest Energy Corporation
Royal Gold Acquires Benso Royalty From FairWest Energy Corporation.
About this update from Red Lake Gold Inc
[{"type":"text","content":"\n\n\n\nDENVER, Oct. 31 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), the\nleading publicly-traded precious metals royalty company, today announced the\npurchase of a 1.5% net smelter return ("NSR") royalty from FairWest Energy\nCorporation ("FairWest") on the Benso gold concession in Ghana for $1.875\nmillion. The Benso concession, controlled by Golden Star Resources Ltd\n("Golden Star"), is located approximately 25 miles south of Golden Star's\nWassa mine. Golden Star has reported that, as of June 15, 2007, the project\ncontains 252,000 ounces of proven and probable reserves. The acquisition is\nsubject to certain conditions including the registration of the royalty in\nGhana and approval of the transfer of the royalty by the Minister of Lands,\nForestry, and Mines of the Republic of Ghana.\n\n\nTony Jensen, Royal Gold's President and Chief Executive Officer,\ncommented, "We are pleased to add another near term royalty to our development\nstage portfolio. Golden Star recently announced construction of the road from\nBenso to the Wassa processing plant and plans to begin haulage of high grade\nore from the project in the third quarter of calendar 2008. This new\nacquisition brings us another royalty in West Africa and will complement our\nexisting portfolio."\n\n\nGolden Star Resources Ltd. (Amex: GSS; TSX: GSC), a Denver-based company,\nholds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden\nStar (Wassa) Limited, which respectively own the Bogoso/Prestea and Wassa\nopen-pit gold mines in Ghana. In addition, Golden Star has an 81% interest in\nthe currently inactive Prestea Underground mine in Ghana, as well as gold\nexploration interests elsewhere in Ghana, in other parts of West Africa and in\nthe Guiana Shield of South America.\n\n\nRoyal Gold is a precious metals royalty company engaged in the\nacquisition and management of precious metal royalty interests. Royal Gold is\npublicly traded on the NASDAQ Global Select Market under the symbol "RGLD,"\nand on the Toronto Stock Exchange under the symbol "RGL." The Company's web\npage is located at http://www.royalgold.com.\n\n\nCautionary "Safe Harbor" Statement Under the Private Securities\nLitigation Reform Act of 1995: With the exception of historical matters, the\nmatters discu...