Referenced Stocks

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

By Midnight Trader,  August 13, 2012, 01:02:14 PM EDT

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 The NASDAQ OMX Group, Inc.


This article appears in: Investing, Commodities

Referenced Stocks: RGLD, TC



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