Business
Royal Gold Closes Pascua Lama Royalty Transaction
Royal Gold Closes Pascua Lama Royalty Transaction.
About this update from Red Lake Gold Inc
[{"type":"text","content":"\n\n\n\nDENVER, March 12 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; Toronto: RGL) \ntoday announced that is has closed its $20.5 million transaction with a\nprivate individual to acquire a sliding-scale net smelter return ("NSR")\nroyalty on the Pascua Lama project, as previously announced on January 17,\n2007. The Pascua Lama project, located on the border between Argentina and\nChile, is owned by Barrick Gold Corporation.\n\n\nThe sliding-scale NSR royalty is applicable to all gold production from\nan area of interest in Chile. The royalty ranges from 0.16% when the average\nquarterly gold price is less than or equal to $325 per ounce, to a maximum of\n1.08% when the average quarterly gold price is greater than or equal to $800\nper ounce.\n\n\nAccording to Barrick's publicly available reserve and resource statement\nof December 31, 2006, Pascua Lama's proven reserves include 38.2 million tons\nof ore, at a grade of 0.053 ounces per ton, containing about 2.0 million\nounces of gold. Probable reserves include 352.8 million tons of ore, at a\ngrade of 0.042 ounces per ton, containing about 15.0 million ounces of gold.\nApproximately 80% of the proven and probable reserves are located in Chile.\nThe transaction also included a 0.216% NSR copper royalty which does not take\neffect until after January 1, 2017, and is applicable to 100% of the copper\nreserves in Chile. Barrick is targeting production in calendar 2010.\n\n\nRoyal Gold is a precious metals royalty company engaging 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 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 discussed in this press release include forward-looking statements\nthat involve risks and uncertainties that could cause actual results to differ\nmaterially from projections or estimates contained herein. Such\nforward-looking statements include statements regarding proven and probable\nreserves and timing of production. Like any royalty acquisition on a\nnon-producing or not yet in developm...