DENVER, Jan. 24 /CNW/ - Royal Gold, Inc. (Nasdaq: RGLD; TSX: RGL) today announced that is has closed its transaction with Minera Kennecott S.A. De C.V. to acquire a 2.0% net smelter return ("NSR") royalty on the Penasquito project in Zacatecas, Mexico, as previously announced on December 29, 2006. The cost of the acquisition was $80 million in cash and 577,434 shares of Royal Gold common stock. Royal Gold also obtained the right to acquire additional NSR royalties ranging from 1.0% to 2.0% on a number of properties in the region.
The Penasquito project, composed of two main deposits called Penasco and Chile Colorado, is under development by Goldcorp Inc. ("Goldcorp"). The Penasquito project hosts one of the world's largest silver, gold and zinc reserves, while also containing large lead reserves.
Royal Gold is a precious metals royalty company engaging in the acquisition and management of precious metal royalty interests. Royal Gold is publicly traded on the Nasdaq Global Select Market under the symbol "RGLD," and on the Toronto Stock Exchange under the symbol "RGL." The Company's web page is located at www.royalgold.com.