Press release
Royal Gold Announces Separation of the Wassa and Prestea/Bogoso Stream Agreement, and New Stream Agreement with Future Global Resources Limited
DENVER--(BUSINESS WIRE)-- Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced today that
About this update from Royal Gold, Inc.
[{"type":"text","content":" DENVER--(BUSINESS WIRE)--\nRoyal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced today that it has completed the separation of the Wassa and Prestea/Bogoso stream agreement into separate stream agreements with Golden Star Resources Limited (“Golden Star”) for the Wassa mine (“Wassa Stream Agreement”), and with Future Global Resources Limited (“FGR”) for the Prestea/Bogoso mines (“Prestea/Bogoso Stream Agreement”), effective September 30, 2020.\n\nBackground and Rationale for the Transaction\nRoyal Gold entered into a stream agreement with Golden Star on May 6, 2015, as amended (the “Original Stream Agreement”), which provides for the right to purchase 10.5% of the gold produced from Golden Star’s Wassa and Prestea/Bogoso mines until an aggregate delivery of 240,000 ounces, after which the stream percentage would decrease to 5.5%. The cash purchase price for gold was 20% of the spot price per ounce delivered until the aggregate delivery of 240,000 ounces, and 30% of the spot price per ounce delivered thereafter.\n\nOn July 27, 2020, Golden Star announced that it signed a binding agreement for the sale of the Prestea/Bogoso mines to FGR, which required the separation of the Original Stream Agreement into separate stream agreements for each of Wassa and Prestea/Bogoso.\n\nFrom May 6, 2015 through June 30, 2020, approximately 110,500 ounces of payable gold were delivered to Royal Gold from the Wassa and Prestea/Bogoso mines according to the terms of the Original Stream Agreement. Of this total, 69,700 ounces were delivered from Wassa and 40,800 ounces were delivered from Prestea/Bogoso.\n\nKey Terms of the Wassa Stream Agreement\nIn summary, the Wassa Stream Agreement gold stream rates and cash purchase prices remain consistent with the Original Stream Agreement, and the gold delivery threshold of 240,000 ounces will apply to the Wassa mine.\n\nBased on the deliveries received from Golden Star under the Original Stream Agreement, as of June 30, 2020, approximately 129,500 ounces remain to be delivered before the 240,000 ounce delivery threshold is reached.\n\nThe material terms of the Wassa Stream Agreement, including security and the rights and obligations of both Royal Gold and Golden Star, remain consistent with those in the Original Stream Agreement as they rela...