Royal Gold Acquires Additional Stake in Mt. Milligan Project; Royal Gold Slips, Thompson Creek Hits New Yr Lows

By Staff,

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Royal Gold, Inc. ( RGLD ) is down 0.5% at $75.11 but above a day low $74.41 after it today announced it has closed the acquisition, through its wholly owned subsidiary RGLD Gold AG, of an additional 12.25% of the payable gold produced from the Mt. Milligan copper-gold project from a subsidiary of Thompson Creek Metals Company, Inc. ( TC ). Consideration for the new transaction was $200 mln and cash payments equal to the lesser of $435 or the prevailing market price for each payable ounce of gold delivered to RGLD.

RGLD is now entitled to 52.25% of the payable gold produced from Mt. Milligan for total consideration of $781.5 million and the Delivery Payments. Once the $75.0 million is paid in connection with today's closing, RGLD will have paid approximately $529.6 million to TC.

RGLD trades in a 52-week range of $57.00 - $83.87. Shares have increased 10% in the last 12 months.

TC dropped to a new year low of $2.41 this morning, and is currently down 5% at $2.44.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: RGLD , TC

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