Royal Gold, Inc. (
) has agreed to acquire, through its wholly-owned subsidiary RGLD
Gold AG, an additional 12.25% of the payable gold produced from the
Mt. Milligan copper-gold project, located in British Columbia, from
a subsidiary of Thompson Creek Metals Company Inc.
Consideration for the new transaction is $200 million and cash
payments equal to the lesser of $435 or the prevailing market price
for each payable ounce of gold delivered to Royal Gold. The
structure of the delivery payments is unchanged from the Mt.
Milligan transaction announced in December 2011.
To date, Royal Gold has paid approximately $454.6 million to
Thompson Creek and will pay $75.0 million following closing of the
new transaction and the remaining $251.9 million in five scheduled
quarterly payments commencing on September 1, 2012 and ending on
September 1, 2013.
RGLD shares are off 2% to $77.15, above their day low of $76.05,
but well off their intraday top of $78.01.