Business
Royal Gold Completes Acquisition of Barrick Gold's Royalty Portfolio
DENVER, Oct. 6 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), the leading precious metals ro...
About this update from Red Lake Gold Inc
[{"type":"text","content":"\n\n\n\nDENVER, Oct. 6 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), the\nleading precious metals royalty company, today announced the closing of its\nacquisition of the royalty portfolio from Barrick Gold Corporation\n("Barrick"), effective October 1, 2008. Consideration to Barrick for the\ntransaction was approximately $150 million net cash and a restructuring of\nRoyal Gold's royalty positions at Barrick's Cortez Pipeline Mining Complex\n("Cortez") in Nevada, valued at $31.5 million. The cash portion of the\npurchase price for the transaction was paid from Royal Gold's cash on hand. \nThe Company initially announced the execution of a definitive agreement to\nacquire Barrick Gold's royalty portfolio on July 31, 2008.\n\n\nThe royalty portfolio consists of royalties on 72 properties, including 8\nproducing royalties, 2 development stage properties, 19 evaluation stage\nproperties, and 43 exploration projects. Approximately 75% of the portfolio\nconsists of precious metals royalties. See Tables 1 through 4 for a list of\nall the royalty properties acquired in the transaction along with calendar\n2008 first half production and revenue figures for the majority of the\nproducing properties.\n\n\nRoyalties on 77 properties were included in the Barrick royalty portfolio\nat the time Royal Gold entered into the definitive purchase agreement with\nBarrick. As previously announced, several royalties in the portfolio were\nsubject to rights of first refusal ("ROFR") or buy down rights. Of the 77\nproperties initially included in the royalty portfolio, three properties were\ntransferred to third parties upon the exercise of ROFRs and two properties\nwere removed from the transaction. The removal of these five royalties\nreduced the purchase price by $210,000. Osisko Mining did not exercise its\nROFR on the Malartic property. In addition, one evaluation stage property,\nhaving an attributed value for purposes of the transaction of approximately\n$1.0 million, remains subject to a ROFR which is due to expire by the end of\nOctober 2008. This royalty will either be transferred to Royal Gold following\nexpiration or waiver of the ROFR, or transferred by Barrick to the\nROFR-holder if the ROFR is exercised in accordance with its terms.\n\n\nRoyal Gold holds four gold royalty interests at Cortez, consisting ...