Business
Royal Gold to Begin Receiving Royalty Revenue From High River Gold's Taparko Mine
Royal Gold to Begin Receiving Royalty Revenue From High River Gold's Taparko Mine.
About this update from Red Lake Gold Inc
[{"type":"text","content":"\n\n\n\nDENVER, July 19 /CNW/ -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), the\nleading precious metals royalty company, today announced the initiation of\ngold production subject to the Company's royalty interests at the\nTaparko-Bouroum ("Taparko") gold mine in Burkina Faso, West Africa, operated\nby High River Gold Mines Ltd. ("High River"). Royal Gold holds four royalty\ninterests at this property.\n\n\nThe Company's royalty interests at Taparko include: 1) TB-GRS1 - a 15%\ngross smelter return ("GSR") royalty on all gold produced that will terminate\nwhen either cumulative production of 804,420 ounces of gold is achieved or\nuntil Royal Gold receives $35 million in cumulative payments; 2.) TB-GSR2 - a\nsliding scale GSR royalty on all gold produced that will terminate with GSR1;\n3.) TB-GSR3 - a 2% GSR royalty on all gold contained in and produced from\nTaparko that will go into effect after GSR1 is terminated; and 4.) TB-MR1 - a\n0.75% milling royalty on all gold mined outside of Taparko that is processed\nthrough Taparko processing facilities.\n\n\nAt a gold price of $650 per ounce, Royal Gold will receive an amount\nequal to 21.5% of the gross gold production from the two initial GSR\nroyalties. High River commenced processing ore and completed its initial gold\npour on July 17, 2007. The operation is expected to continue to ramp up\nproduction over the next few months.\n\n\nCommenting on the start-up of the Tarparko mine, Tony Jensen, President\nand Chief Executive Officer of Royal Gold, said, "We congratulate the\noperating team at High River in bringing the Taparko mine into production and\nrecognize their hard work to construct and now commission the operation. Based\nupon the operator's production estimate of 60,000 ounces of gold for calendar\n2007, this royalty will be an important contributor to our revenue stream. \nTaparko is another example of successful execution on our growth strategy."\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 http://www.royalgold.com.\n\n\nCautionary &quo...