Your World of Legal Intelligence
 United Kingdom | +44 (0) 20 7284 8080

Royal Gold Acquires Additional Royalty Interest in Cortez Gold Complex for USD 525m.

Document Cited in Related
Vincent

MANews-(C)2009-2022

Colorado, US-based precious metals stream and royalty company RG Royalties, LLC has acquired a sliding-scale gross royalty interest in the Cortez Gold Complex mine operational area, located in Nevada, for USD 525m in cash consideration for the Royalty to Kennecott Royalty, the company said.

Royal Gold paid cash consideration from available cash resources and a draw of USD 500m on a previously undrawn USD 1bn revolving credit facility.

In keeping with Royal Gold's capital allocation strategy, the company expects to repay this outstanding debt from future cash flow.

No additional equity will be issued to fund this transaction.

RG Royalties, LLC is a wholly owned subsidiary of Denver-based Royal Gold, Inc. (NASDAQ: RGLD). Kennecott Royalty Company is a wholly owned subsidiary of Rio Tinto European Holdings Ltd.

The acquisition is for an area that includes the Cortez mine operational area and the Fourmile development project in Nevada.

The area within the Cortez Complex is owned or controlled by Nevada Gold Mines LLC (NGM), a joint venture between Barrick Gold Corp. (61.5% owner and operator) and Newmont Corp. (38.5% owner), with the exception of the Fourmile development project which is...

To continue reading

Request your trial
COPYRIGHT Normans Media Ltd.

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT