Le Lézard
Classified in: Covid-19 virus
Subjects: Contract/Agreement, Divestiture

Royal Gold Announces Sale of its Ownership Interest in the Peak Gold Project


ROYAL GOLD, INC. (NASDAQ: RGLD) (together with its subsidiaries, "Royal Gold" or the "Company," "we" or "our") announced today that the Company has entered into an agreement to sell its ownership interest in the Peak Gold Project in Tok, Alaska and its common share position in Contango Ore, Inc. (OTC: CTGO) ("Contango") for total cash consideration of $61.3 million and increased royalty interests. All conditions precedent to closing have been satisfied and the transactions are expected to close on or before October 1, 2020.

Royal Gold has agreed to complete two transactions with an affiliate of Kinross Gold Corporation ("Kinross") for the following cash consideration:

After completion of these transactions, and the concurrent transactions announced between Kinross and Contango, the Peak Gold Project will be owned 70% by Kinross and 30% by Contango, with Kinross as the project operator.

In addition to the cash consideration, Royal Gold will receive increased royalty interests as follows:

"This transaction allows Royal Gold to focus on its core royalty and streaming business," commented Bill Heissenbuttel, President and CEO of Royal Gold. "While the Peak Gold Project is a non-core asset to Royal Gold, it is one of the most interesting emerging gold projects in the United States. We developed a strong working relationship with Chief Michael Sam, the Tetlin Village Council and the Tetlin people over the past several years, and we are confident that Kinross' experience and record of responsible mining in Alaska positions them as the ideal operator to advance the project to production. We will retain exposure to the project in a form that is more consistent with our core business through our existing 3% NSR royalty on all metals and the incremental 28% NSR royalty on silver in the current resource area, and the higher 3% NSR royalty on all metals on the exploration properties owned by Contango. Kinross expects to integrate the Peak Gold Project with their existing Fort Knox operation, which should simplify permitting and development and thereby further enhance the value of these royalty interests to Royal Gold, and the increased royalty interest in the spun-out exploration ground will provide continued exposure to exploration success on a substantial and prospective land package without further active involvement from Royal Gold."

Advisors
Scotiabank acted as financial advisor, and Hogan Lovells LLP acted as counsel to Royal Gold on the transaction.

Corporate Profile
Royal Gold is a precious metals stream and royalty company engaged in the acquisition and management of precious metal streams, royalties and similar production-based interests. As of June 30, 2020, the Company owned interests on 187 properties on five continents, including interests on 41 producing mines and 17 development stage projects. Royal Gold is publicly traded on the Nasdaq Global Select Market under the symbol "RGLD." The Company's website is located at www.royalgold.com.

Forward-Looking Statements: This press release includes "forward-looking statements" within the meaning of U.S. federal securities laws. Forward-looking statements are any statements other than statements of historical fact. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from these statements. Forward-looking statements are often identified by words like "will," "may," "could," "should," "would," "believe," "estimate," "expect," "anticipate," "plan," "forecast," "potential," "intend," "continue," "project," or negatives of these words or similar expressions. Forward-looking statements include, among others, statements about the expected closing of the transaction; the impact of the transaction on Royal Gold; the value of the royalty interests to Royal Gold; and plans for Kinross's development, permitting, and operation of the Peak Gold Project.

Factors that could cause actual results to differ materially from these forward-looking statements include, among others, the following: a low-price environment for gold or other metals; development, permitting, and operating activities relating to the Peak Gold Project; adverse economic and market conditions; changes in laws or regulations; the impacts of the COVID-19 pandemic; and other factors described in our reports filed with the Securities and Exchange Commission, including our Form 10-K for the fiscal year ended June 30, 2020. Most of these factors are beyond our ability to predict or control.

Forward-looking statements speak only as of the date on which they are made. We disclaim any obligation to update any forward-looking statements, except as required by law. Readers are cautioned not to put undue reliance on forward-looking statements.


These press releases may also interest you

at 11:45
The "U.S. Augmented and Virtual Reality Headset Market - A Country Analysis: Focus on Application, Product, and Country - Analysis and Forecast, 2024-2033" report has been added to  ResearchAndMarkets.com's offering. The U.S. augmented and virtual...

at 11:30
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Amplitude, Inc. ("Amplitude" or the "Company") and reminds investors of the April 15, 2024 deadline to seek the role of lead plaintiff in a...

at 11:00
The "Thailand Construction Equipment Rental Market - Strategic Assessment & Forecast 2024-2029" report has been added to  ResearchAndMarkets.com's offering. The Thailand construction equipment rental market is expected to reach a value of $428.7...

at 11:00
The following is written by Dr. Tracy D. Hall, President of Southwest Tennessee Community College: The Chronicle of Higher Education released in July 2023 a publication entitled "College as a Public Good: Making the case through community...

at 10:45
The "PCR Markets. Forecasts for qPCR, dPCR, Singleplex & Multiplex Markets and by Application, Product and Place. With Executive and Consultant Guides, Including Customized Forecasting and Analysis. 2023 to 2027" report has been added to...

at 10:01
The Predictive Maintenance Market is estimated to grow from USD 10.6...



News published on and distributed by: