ROYAL GOLD,INC. (NASDAQ:RGLD) Files An 8-K Other Events
Item 8.01Other Events.
On February 25, 2019, Royal Gold, Inc. (the “Company”) announced that its wholly-owned subsidiary RGLD Gold AG (“RG AG”) entered into a life of mine purchase and sale agreement for silver produced from the Khoemacau Copper Project (the “Project”) in Botswana with Khoemacau Copper Mining (Pty.) Limited (“KCM”), a wholly-owned subsidiary of Cupric Canyon Capital LP (together with all its subsidiaries including KCM, “Cupric”), a private company owned by management and funds advised by Global Natural Resource Investments.
to the purchase and sale agreement:
|
1) Silver Stream: RG AG will make US$ 212 million in advance payments to Cupric in exchange for deliveries equal to 80% of the silver production from the Project.The advance payment will be made in quarterly installments as project development advances according to the following approximate schedule:US$ 60 million in the third and fourth calendar quarters of 2019, US$ 125 million in 2020, and the balance in 2021. |
|
2) Option Stream: At Cupric’s option and subject to various conditions, RG AG will make up to an additional US$ 53 million advance payment towards the end of development of the Project for up to an additional 20% of the silver production from the Project. |
|
3) The stream rate will drop by 50% upon delivery to RG AG of 32 million ounces for the Silver Stream, or upon delivery to RG AG of 40 million ounces in the case that the Option Stream is fully exercised. |
|
4) RG AG will make ongoing cash payments per ounce of silver delivered equal to 20% of the spot silver price at the time of delivery.Depending on the achievement by Cupric of mill expansion throughput levels above 13,000 tonnes per day (30% above current mill design capacity), Royal Gold will pay higher ongoing cash payments for ounces delivered in excess of specific annual thresholds. |
In addition to advance payments made to Cupric in exchange for silver deliveries under the purchase and sale agreement, RG AG, subject to various conditions, will make available up to US$ 25 million to Cupric toward the end of the development of Khoemacau in the form of a subordinated debt facility.Any amounts drawn under the facility would carry interest at LIBOR + 11% with a term of seven years.
About ROYAL GOLD,INC. (NASDAQ:RGLD)
Royal Gold, Inc., together with its subsidiaries, is engaged in acquiring and managing precious metal streams, royalties and similar interests. The Company operates through two segments: Acquisition and Management of Stream Interests, and Acquisition and Management of Royalty Interests. Its assets are located in Canada, Chile, Dominican Republic, Mexico, the United States, Africa, Australia and Other. As of June 30, 2016, the Company owned stream interests on four producing properties and three development-stage properties. It has investments in stream interests relating to Pueblo Viejo, Andacollo, Wassa and Prestea, and Rainy River. As of June 30, 2016, the Company owned royalty interests on 34 producing properties, 21 development-stage properties and 131 exploration-stage properties, of which it considered 50 to be evaluation-stage projects.
