Royal Gold Ups Stake in Mt. Milligan Project; Shares Slide 2%, About Half Way Between Day Highs and Lows

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Royal Gold, Inc. ( RGLD ) 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.



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This article appears in: Investing , Commodities

Referenced Stocks: RGLD

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