DENVER, Oct. 6 /PRNewswire-FirstCall/ -- ROYAL GOLD, INC. (Nasdaq:
RGLD; TSX: RGL), the leading precious metals royalty company, today
announced the closing of its acquisition of the royalty portfolio
from Barrick Gold Corporation ("Barrick"), effective October 1,
2008. Consideration to Barrick for the transaction was
approximately $150 million net cash and a restructuring of Royal
Gold's royalty positions at Barrick's Cortez Pipeline Mining
Complex ("Cortez") in Nevada, valued at $31.5 million. The cash
portion of the purchase price for the transaction was paid from
Royal Gold's cash on hand. The Company initially announced the
execution of a definitive agreement to acquire Barrick Gold's
royalty portfolio on July 31, 2008. The royalty portfolio consists
of royalties on 72 properties, including 8 producing royalties, 2
development stage properties, 19 evaluation stage properties, and
43 exploration projects. Approximately 75% of the portfolio
consists of precious metals royalties. See Tables 1 through 4 for a
list of all the royalty properties acquired in the transaction
along with calendar 2008 first half production and revenue figures
for the majority of the producing properties. Royalties on 77
properties were included in the Barrick royalty portfolio at the
time Royal Gold entered into the definitive purchase agreement with
Barrick. As previously announced, several royalties in the
portfolio were subject to rights of first refusal ("ROFR") or buy
down rights. Of the 77 properties initially included in the royalty
portfolio, three properties were transferred to third parties upon
the exercise of ROFRs and two properties were removed from the
transaction. The removal of these five royalties reduced the
purchase price by $210,000. Osisko Mining did not exercise its ROFR
on the Malartic property. In addition, one evaluation stage
property, having an attributed value for purposes of the
transaction of approximately $1.0 million, remains subject to a
ROFR which is due to expire by the end of October 2008. This
royalty will either be transferred to Royal Gold following
expiration or waiver of the ROFR, or transferred by Barrick to the
ROFR-holder if the ROFR is exercised in accordance with its terms.
Royal Gold holds four gold royalty interests at Cortez, consisting
of two sliding-scale gross smelter return ("GSR") royalties ("GSR1"
and "GSR2"), a fixed-rate GSR royalty ("GSR3") and a net value
return royalty ("NVR1"). The restructuring of Royal Gold's royalty
positions at Cortez consisted of the following: (1) a reduction of
Royal Gold's GSR2 sliding-scale royalty, from a range of 0.72% to
9.0%, to match the current GSR1 sliding-scale royalty rate ranging
from 0.40% to 5.0%, and (2) the elimination of Royal Gold's
interest in the 0.71% GSR3 royalty and the 0.39% NVR1 royalty on
the mining claims that comprise the undeveloped Crossroads deposit.
The GSR3 and NVR1 royalties that cover areas outside of the
Crossroads deposit at Cortez were not affected by this transaction.
The Crossroads deposit continues to be subject to Royal Gold's GSR2
royalty at the reduced royalty rate. As a result of the
transaction, Royal Gold now holds a total of 22 producing
royalties, 6 development stage properties, 27 evaluation stage
properties and 64 exploration projects. About Royal Gold Royal Gold
is the leading precious metals royalty company engaged in the
acquisition and management of precious metals royalty interests.
Royal Gold is publicly-traded on the NASDAQ Global Select Market
under the symbol "RGLD," and on the Toronto Stock Exchange under
the symbol "RGL." The Company's web page is located at
http://www.royalgold.com/. Cautionary "Safe Harbor" Statement under
the Private Securities Litigation Reform Act of 1995: With the
exception of historical matters, the matters discussed in this
press release are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially
from the forward-looking statements contained herein. Such
forward-looking statements include statements regarding operator's
estimates of reserves, additional mineralized material and the
price of potash per ton for 2008, and the estimated closing date
for the acquisition of any royalty in the Barrick royalty portfolio
that was not transferred at the closing of the transaction. Like
any royalty acquisition that contains significant assets that are
not producing or not yet in development, the royalties in the
royalty portfolio that are in development, evaluation or
exploration stages are subject to certain risks, such as the
ability of the operator to bring the project into production and
operate in accordance with the feasibility study and the ability of
Royal Gold to make accurate assumptions regarding valuation, timing
and amount of royalty payments. In addition, the royalties are
subject to certain risks associated with conducting business in
foreign countries, including application of foreign laws to
contract and other disputes, foreign environmental laws and
enforcement and uncertain political and economic environments.
Furthermore, the acquisition of royalties from Barrick, like any
royalty acquisition, involves risks that operators of mining
projects and holders of mining claims, tenements, concessions or
other land interests may contest the existence or extent of one or
more of the royalty interests. While Royal Gold seeks to confirm
the validity of royalties it acquires, there can be no assurance
that such disputes will not arise. As a general matter, royalty
interests in mining projects or properties are subject to
uncertainties and complexities arising from the application of
contract and property laws governing private parties or the local
or national governments. Factors that could cause actual results to
differ materially from projections include, among others, the
exercise of rights of first offer and rights of first refusal on
royalties acquired, precious metals and other commodity prices,
decisions and activities of the operators of the various
properties, unanticipated grade, geological, metallurgical,
processing or other problems the operators may encounter, changes
in project parameters as plans continue to be refined, economic and
market conditions, as well as other factors described elsewhere in
this press release and in the Company's Annual Report on Form 10-K,
and other filings with the Securities and Exchange Commission. Most
of these factors are beyond the Company's ability to predict or
control. The Company disclaims any obligation to update any
forward-looking statement made herein. Readers are cautioned not to
put undue reliance on forward- looking statements. TABLE 1 BARRICK
ROYALTY PORTFOLIO PRODUCING AND DEVELOPMENT PROPERTIES RESERVES
(1),(2),(3),(4) GOLD/SILVER PRODUCING Property Location Ownership
NSR Rate % Metal Mulatos (6) Sonora, Mexico Alamos Gold 0.70 - 3.50
Gold Siguiri (7) Siguiri, Guinea AngloGold 0.00 - 1.875 Gold
Ashanti Balcooma Queensland, Kagara 1.50 Gold Australia Balcooma
Queensland, Kagara 1.50 Silver Australia El Toqui (10) Aysen
Region, Breakwater 1.0 - 3.0 Gold Chile Resources Wharf (11) South
Dakota, U.S. Goldcorp 0.00 - 2.0 Gold DEVELOPMENT Holt/Holloway
Ontario, Canada St Andrew 0.00013 Gold Goldfields AU price
Meekatharra (12) W.A., Australia Mercator Gold AUD$10 Gold (Paddy's
Flat) per ounce PRODUCING Average Contained First Half CY'08
Property Tons of Grade Ounces(5) Production Revenue Ore(M) (opt)
(M) (oz) ($M) Mulatos (6) 35.42 0.048 1.689 70,091 2.3 Siguiri (7)
122.22 0.022 2.629 172,553 3.4 Balcooma 1.12 0.016 0.018 2,504 (8)
1.8 (9) Balcooma 1.12 1.64 1.842 257,200 (8) (9) El Toqui (10) 5.20
0.032 0.167 9,610 0.3 Wharf (11) 8.95 0.025 0.220 28,700 0.4
DEVELOPMENT Holt/Holloway 2.95 0.165 0.486 - - Meekatharra (12)
2.19 0.140 0.308 - - (Paddy's Flat) BASE METALS PRODUCING Property
Location Ownership NSR Rate % Metal Mt. Goode W.A., Xstrata 1.50
Nickel (Cosmos) Australia Balcooma Queensland, Kagara 1.50 Copper
Australia Balcooma Queensland, Kagara 1.50 Zinc Australia Balcooma
Queensland, Kagara 1.50 Lead Australia El Toqui (10) Aysen Region,
Breakwater 1.0 - 3.0 Zinc Chile Resources Koolanooka W.A., Midwest
AUD$0.25/t Iron Ore Australia Average Contained First Half CY'08
Property Tons of Grade Lbs(5) Production Revenue Ore(M) (%) (M)
(tons) ($M) Mt. Goode 1.31 4.45 116 1,722 1.0 (Cosmos) Balcooma
2.18 3.1 135 16,443 (8) (9) Balcooma 1.12 8.3 185 19,950 (8) (9)
Balcooma 1.12 3.3 73 3,537 (8) (9) El Toqui (10) 5.20 7.3 759
18,089 0.5 Koolanooka 0.40 - - (13) (13) POTASH PRODUCING Property
Location Ownership NSR Rate % Element Allan (14) Saskatchewan,
Potash Corporation $0.36 - 1.44 Potash Canada of Saskatchewan per
ton Average Contained First Half CY'08 Grade Tons(5) Production
Revenue Property Tons (M) (%) (M) (tons) ($M) Allan (14) 348.33
25.9 90 (12) 0.4 TABLE 1 BARRICK ROYALTY PORTFOLIO PRODUCING AND
DEVELOPMENT PROPERTIES FOOTNOTES (1) Set forth below are
definitions for proven and probable reserves used by the U.S.
Securities and Exchange Commission. "Reserve" is that part of a
mineral deposit which could be economically and legally extracted
or produced at the time of the reserve determination. "Proven
(Measured) Reserves" are reserves for which (a) quantity is
computed from dimensions revealed in outcrops, trenches, workings
or drill holes, and the grade is computed from the results of
detailed sampling, and (b) the sites for inspection, sampling and
measurement are spaced so closely and the geologic character is so
well defined that the size, shape, depth and mineral content of the
reserves are well established. "Probable (Indicated) Reserves" are
reserves for which the quantity and grade are computed from
information similar to that used for proven (measured) reserves,
but the sites for inspection, sampling and measurement are farther
apart or are otherwise less adequately spaced. The degree of
assurance of probable (indicated) reserves, although lower than
that for proven (measured) reserves, is high enough to assume
geological continuity between points of observation. In this press
release, Royal Gold has disclosed a number of reserve estimates
that are provided by royalty operators that are foreign issuers and
are not based on the U.S. Securities and Exchange Commission's
definitions for proven and probable reserves. For Canadian issuers,
definitions of "mineral reserve," "proven mineral reserve," and
"probable mineral reserve" conform to the Canadian Institute of
Mining, Metallurgy and Petroleum definitions of these terms as of
the effective date of estimation as required by National Instrument
43-101 of the Canadian Securities Administrators. For Australian
issuers, definitions of "mineral reserve," "proven mineral
reserve," and "probable mineral reserve" conform with the
Australasian Code for Reporting of Mineral Resources and Ore
Reserves prepared by the Joint Ore Reserves Committee of the
Australasian Institute of Mining and Metallurgy, Australian
Institute of Geoscientists and Minerals Council of Australia, as
amended ("JORC Code"). In each case, the reserves reported
hereunder are estimates previously disclosed by the relevant
operator, without reference to the underlying data used to
calculate the estimates. Accordingly, Royal Gold is not able to
reconcile the reserve estimates prepared in reliance on National
Instrument 43-101 or JORC Code with definitions of the U.S.
Securities and Exchange Commission. (2) Estimated reserves subject
to the Barrick royalty portfolio interests. Each listed royalty is
based on royalty documentation material provided to Royal Gold by
Barrick. Except for Mulatos, Royal Gold has not been supplied with
reserve information directly from the operator. This information is
derived from recent publicly-available information from the
operators of the various properties or various recent National
Instrument 43-101 or JORC Code reports filed by operators. A
portion of the reported reserves may not be subject to Royal Gold's
royalty interests and/or may be subject to contractual limitations
such as production caps, monetary caps, and the extent of claim,
concession or tenement boundaries. (3) Reserves have been
calculated by the operators as of December 31, 2007, with the
exception of the following properties: Balcooma and Mt. Goode -
June 30, 2007; Holt/Holloway - June 1, 2008; Meekatharra (Paddy's
Flat) - September 19, 2007. The Koolanooka reserves are based on an
above ground stockpile of iron ore fines and are not calculated as
of a specific date. (4) Gold reserves were calculated by the
operators at the following per ounce prices: $775 - Holt/Holloway;
$650 - Wharf; $600 - Siguiri and El Toqui; $500 - Mulatos. Gold
reserve prices for Balcooma and Meekatherra (Paddy's Flat) were not
available. Silver reserve price for Balcooma was not available.
Base metal reserves were calculated by the operators at the
following price per pound: $1.12 per pound zinc for El Toqui and
US$5.00 per pound of nickel for Mt. Goode. Base metal reserve
prices for copper, zinc and lead at Balcooma were not available.
The Koolanooka reserves are based on an above ground stockpile of
iron ore fines and not at any specific price. Potash price for
Allen was not available. (5) "Contained Ounces," "Contained Pounds"
or "Contained Tons" do not take into account losses in processing
the ore. (6) The royalty is capped at 2.0 million ounces of
production. There has been approximately 248,000 ounces of
cumulative production as of June 30, 2008. NSR sliding-scale
schedule (price of gold per ounce - royalty rate): $0.00 to $299.99
- 0.70%; $300 to $324.99 - 1.05%; $325 to $349.99 - 1.4%; $350 to
$374.99 - 2.10%; $375 to $399.99 - 2.80%; $400 or higher - 3.5%.
(7) The royalty is capped on a dollar basis and approximately $13
million remains to be paid as of June 30, 2008. NSR sliding-scale
schedule (price of gold per ounce - royalty rate as of 3/31/08): $0
to 478.10 - 0.00%; $478.10 to $546.41 - 0.625%; $546.42 to $580.57
- 0.875%; $580.58 to $614.72 - 1.125%; $614.73 to $648.87 - 1.50%;
above $648.87 - 1.875%. The sliding-scale schedule is based on the
average of the United States, Australian and Canadian Consumer
Price Indices on a quarterly basis. The most current rate available
is reflected herein. (8) Metal in concentrate. Figures represent
100% of reported production and may include production that is not
subject to the royalty. (9) Total first-half CY08 revenue from the
Balcooma royalty is estimated to be $1.8 million. A breakdown of
revenue by metal was not available. (10) NSR sliding-scale schedule
(price of zinc per pound - royalty rate): $0.50 to below $0.55 -
1.0%; $0.55 to below $0.60 - 2.0%; $0.60 or higher - 3.0%. Gold is
produced as a by-product of zinc. Royalty currently held in trust
by Barrick for Royal Gold pending receipt of necessary consents.
(11) NSR sliding-scale schedule (price of gold per ounce - royalty
rate): $0.00 to under $350 - 0.0%; $350 to under $400 - 0.5%; $400
to under $500 - 1.0%; $500 or higher - 2.0%. (12) Royalty applies
on production above 50,000 ounces. (13) Current production and/or
revenue figures are not available. (14) The royalty applies to 40%
of production. The royalty rate is $1.44 per ton for the first
600,000 tons on which the royalty is paid, reducing to $0.72 per
ton on 600,000-800,000 tons and to $0.36 per ton above 800,000
tons. The sliding-scale is applicable when the price of potash
drops below $23 per ton. Given the current North American market
price for potash, the complete sliding-scale schedule is not
presented here. In addition, there is a $0.25 per ton royalty
payable on annual production up to 600,000 tons. TABLE 2 BARRICK
ROYALTY PORTFOLIO PRODUCING AND DEVELOPMENT PROPERTIES ADDITIONAL
MINERALIZED MATERIAL (1),(2),(3) GOLD/SILVER PRODUCING Property
Location Ownership NSR Rate % Metal Mulatos (4) Sonora, Mexico
Alamos Gold 0.70 - 3.50 Gold Siguiri (5) Siguiri, Guinea AngloGold
0.00 - 3.75 Gold Ashanti Wharf (6) South Dakota, Goldcorp 2.0 Gold
U.S. DEVELOPMENT Holt/Holloway Ontario, Canada St Andrew 0.00013 x
Gold (7), (8) Goldfields Au price Meekatharra (9) Queensland,
Mercator AUD$10 Gold (Paddy's Flat) Australia Gold per ounce
PRODUCING Measured Indicated Inferred Average Average Average Tons
Grade Tons Grade Tons Grade (M) (opt) (M) (opt) (M) (opt) Mulatos
(4) 12.31 0.029 58.47 0.027 70.79 0.027 Siguiri (5) 1.10 0.021
20.70 0.027 63.60 0.027 Wharf (6) 3.42 0.020 5.26 0.021 4.42 0.025
DEVELOPMENT Holt/Holloway 1.46 0.194 2.11 0.200 1.18 0.226 (7), (8)
Meekatharra (9) - - 17.51 0.039 8.74 0.040 (Paddy's Flat) BASE
METALS PRODUCING Property Location Ownership NSR Rate % Metal Mt.
Goode W.A., Australia Xstrata 1.50 Nickel (Cosmos) Balcooma
Queensland, Kagara 1.50 Copper Australia Balcooma Queensland,
Kagara 1.50 Zinc Australia Balcooma Queensland, Kagara 1.50 Lead
Australia El Toqui Aysen Region, Breakwater 1.0 - 3.0 Zinc (8),
(10) Chile Resources Measured Indicated Inferred Average Average
Average Tons Grade Tons Grade Tons Grade (M) (%) (M) (%) (M) (%)
Mt. Goode 15.41 0.95 30.72 0.70 13.89 0.76 (Cosmos) Balcooma - -
1.87 3.7 - - Balcooma - - 0.77 6.7 0.01 7.8 Balcooma - - 0.77 2.8
0.01 3.6 El Toqui Measured and Indicated 5.25 7.1 (8), (10) 5.89
tons @ 8.1% (1) Mineralized material is that part of a mineral
system that has potential economic significance but cannot be
included in the proven and probable ore reserve estimates until
further drilling and metallurgical work is completed, and until
other economic and technical feasibility factors based upon such
work have been resolved. Mineralized material that is not mineral
reserves does not have economic viability. The U.S. Securities and
Exchange Commission does not recognize the term "mineralized
material." Investors are cautioned not to assume that any part or
all of the mineralized material shown will ever be converted into
reserves. (2) Some of the royalty operators are Canadian and
Australian issuers. Canadian and Australian issuers use the terms
"mineral resources" and its subcategories "measured," "indicated"
and "inferred" mineral resources. For Canadian issuers, the
definitions of "mineral resource," "measured mineral resource,"
"indicated mineral resource" and "inferred mineral resource"
conform to the Canadian Institute of Mining, Metallurgy and
Petroleum definitions of those terms as of the effective date of
estimation, as required by National Instrument 43-101 of the
Canadian Securities Administrators. For Australian issuers, the
definitions of "mineral resource," "measured mineral resource,"
"indicated mineral resource" and "inferred mineral resource"
conform with the JORC Code. While such terms are recognized and
required by Canadian and Australian regulations, the U.S.
Securities and Exchange Commission does not recognize them. In each
case, the mineralized material reported hereunder are estimates
previously disclosed by the relevant operator, without reference to
the underlying data used to calculate the estimates. Accordingly,
Royal Gold is not able to reconcile the estimates prepared in
reliance on National Instrument 43-101 or JORC Code with terms
recognized by the U.S. Securities and Exchange Commission.
Investors are cautioned not to assume that any part or all of the
mineral deposits in these categories will ever be converted into
reserves. (3) Each listed royalty is based on royalty documentation
material provided to Royal Gold by Barrick. Royal Gold has not been
supplied with additional mineralized material information directly
from the operator. This information is derived from recent
publicly- available information from the operators of the various
properties or various recent National Instrument 43-101 or JORC
Code reports filed by operators. Additional mineralized material
shown in the table may include additional mineralized material that
is not subject to the royalty interests and/or may be subject to
contractual limitations such as production caps, monetary caps, and
the extent of claim, concession or tenement boundaries. Additional
mineralized material estimates are based on information available
from the operators as of December 31, 2007 with the exception of
the following properties: Holt/Holloway - June 1, 2008; Meekatharra
(Paddy's Flat) - September 19, 2007; Mt. Goode and Balcooma - June
30, 2007. (4) The royalty is capped at 2.0 million ounces of
production. There has been approximately 248,000 ounces of
cumulative production as of June 30, 2008. NSR sliding-scale
schedule (price of gold per ounce - royalty rate): $0.00 to $299.99
- 0.70%; $300 to $324.99 - 1.05%; $325 to $349.99 - 1.40%; $350 to
$374.99 - 2.10%; $375 to $399.99 - 2.80%; $400 or higher - 3.5%.
(5) The royalty is capped on a dollar basis and approximately $13
million remains to be paid as of June 30, 2008. NSR sliding-scale
schedule (price of gold per ounce - royalty rate as of 3/31/08):
$0.00 to $478.10 - 0.00%; $478.10 to $546.41 - 0.625%; $546.42 to
$580.57 - 0.875%; $580.58 to $614.72 - 1.125%; $614.73 to $648.87 -
1.50%; above $648.87 - 1.875%. The sliding-scale is based on the
average of the United States, Australian and Canadian Consumer
Price Indices on a quarterly basis. The most current rate available
is reflected herein. (6) NSR sliding-scale schedule (price of gold
per ounce - royalty rate): $0.00 to under $350 - 0.0%; $350 to
under $400 - 0.5%; $400 to under $500 - 1.0%; $500 or higher -
2.0%. (7) Royalty applies on production above 400,000 ounces. (8)
Additional mineralized material does not include reserves, except
at Holt/Holloway and El Toqui where the operator includes reserves
in the Measured and Indicated category. (9) Royalty applies on
production above 50,000 ounces. (10) NSR sliding-scale schedule
(price of zinc per pound - royalty rate): $0.50 to below $0.55 -
1.0%; $0.55 to below $0.60 - 2.0%; $0.60 or higher - 3.0%. The
operator did not break down additional mineralized material into
"Measured" and "Indicated" categories. Royalty currently held in
trust by Barrick for Royal Gold pending receipt of necessary
consents. TABLE 3 BARRICK ROYALTY PORTFOLIO EVALUATION STAGE
PROPERTIES(1) EVALUATION Property Location Ownership Royalty Rate
Bellevue Australia Siberia Mining 2.00% NSR Keith Kilkenny
Australia Saracen Gold Mines AUD$6/oz (2) (Monty's Dam) AUD$10/oz
(3) Kundip Australia Tectonic 1.00-1.50% Resources NSR (4)
Paddington Australia Norton Goldfields 1.75% NSR Phillips Find
Australia Barra Resources AUD$10/oz (5) Red Dam Australia Carbine
Resources 2.50% GSR Reedy's Burnakura Australia ATW Venture
1.50-2.50% Australia (6), (7) Reedy's Mercator Australia Mercator
1.50-2.50% (7) Yalgoo JV Australia Prosperity AUD$0.3363/t (8)
(Emerald Eclipse) Resources (Yalgoo) Back River Canada Dundee
Precious 1.95% NSR (9) (George Lake Metals 2.35% NSR (9) and Goose
Lake) Bousquet-Cadillac- Canada Agnico Eagle 2.00% NSR Joannes
Kutcho Creek Canada Sherwood Copper 1.60% NSR Malartic Canada
Osisko 2.00-3.00% NSR (10) Rambler Mill Canada Rambler Metals C$1/t
(11) Rambler North Canada Rambler Metals 2.00% NSR Getchell -
United States Newmont 2.00% GSR (12) Twin Creeks Idaho Almaden
United States Freegold Ventures 1.00-2.00% NSR (13) Niblack United
States Abacus Minerals 1.00-3.00% NSR (14) Wildcat United States
Monex 1.00% NSR Explorations TABLE 3 BARRICK ROYALTY PORTFOLIO
EVALUATION STAGE PROPERTY FOOTNOTES (1) Each listed royalty rate is
based on royalty documentation material provided to Royal Gold by
Barrick. Royal Gold considers and categorizes an exploration stage
property to be an "evaluation stage" property if additional
mineralized material has been identified on the property but
reserves have yet to be identified. The U.S. Securities and
Exchange Commission does not recognize the term "mineralized
material." Investors are cautioned not to assume that any part or
all of the mineralized material identified on these properties will
ever be converted into reserves. (2) Royalty applies to production
above 265,745 ounces. (3) Royalty applies to production above
160,333 ounces. (4) Royalty pays 1.0% for the first 250,000 ounces
of production and then 1.5% for production above 250,000 ounces.
(5) Royalty applies to production above 40,000 ounces and is capped
at a maximum of $1.0 million. (6) Royalty subject to right of first
refusal. (7) Royalty applies to cumulative production at both the
Burnakura and Mercator properties above 300,000 ounces. Once
300,000 ounces is produced, the royalty rate is 1.5% for the first
75,000 ounces per year and 2.5% above 75,000 ounces per year. (8)
Royalty calculation is 0.75 x AUD$Au price/AUD$470 x grade/2.5 g/t.
Royal Gold's share of the royalty is 44.85% of the calculated
royalty figure. (9) Royalty rate is 2.35% on George Lake and 1.95%
on Goose Lake. Royalty on George Lake applies to production above
800,000 ounces. Royalty on Goose Lake applies to production above
400,000 ounces. (10) Royalty is subject to a buy down right of $1.0
- $1.5 million, depending on the price of gold, exercisable at any
time for one-half of the royalty. NSR sliding-scale (price of gold
per ounce - royalty rate): $0.00-$350 - 2.0%; above $350 - 3.0%.
(11) Royalty is paid on per ton fed to the mill. (12) Royalty
applies to production above 50,000 ounces. (13) A $325,000 payment
is due upon production of first 100,000 ounces. Once production
reaches 200,000 ounces, the royalty begins paying at the following
rate schedule (price of gold per ounce- royalty rate): $0.00 to
$425 - 1.0%; $425 and above - 2.0%. (14) Royalty rate is 1.0% for
each ton of ore at a NSR value of less than $115 per ton of ore;
2.0% for each ton of ore at a NSR value between $115 and $135 per
ton of ore, and 3.0% for each ton of ore at a NSR value greater
than $135 per ton of ore. TABLE 4 BARRICK ROYALTY PORTFOLIO
EXPLORATION PROPERTIES(1) EXPLORATION Property Location Ownership
Royalty Rate Barmedman Australia Templar Resources 12.50% NPI Biddy
Well Australia View Gold 1.50% NSR Buttercup Bore Australia Apex
Gold and 2.00% CGR Legend Mining Calarie Australia Tri Origin 1.50%
NSR (Tri Origin) Minerals Croesus Australia Bellamel Mining
AUD$1.25/ tonne (2) Lake Ballard Australia Cape Lambert 0.6% NSR
Iron Ore Meekatharra Australia Triumph Mining (3) AUD$1/t (4)
(Sabbath) Mt. Fisher Australia Gerald Brewer AUD$5/oz (5) Mt. Goode
Bellevue Australia Xstrata 2.00% NSR (6) 1.50% NSR 6 North Well
Australia Norilsk 2.50-4.00% Chilkoot NSR (7) Quidong Australia
Stirling Minerals 2.50% NSR Red Hill Australia Cullen 2.50% NSR
Exploration (8) Wembley Durack Australia Horseshoe Gold 1.00% NSR
(Glengarry JV) Mine West Westonia Australia Westonia 0.50% NSR West
Wyalong Australia Golden Cross 2.50% NSR Ashmore Canada Hol-Lac
Gold 1.50% NSR Mines Carswell Lake Canada Talisman Energy 5.00% NSR
Inc. (50%) Far West Mining (50%) Denton Thornloe Canada West
Timmings 1.50% NSR Mining Duverny Canada Les Ressources 15% NVR (9)
Arianne 2.00% NSR (9) Franquet Canada Campbell 2.00% NSR (10)
Resources 3.00% NSR (10) Gauthier Canada Contact Diamond 3.00% NSR
Godfrey II Canada Moneta Porcupine 2.00% NSR Mines Golden Bear
Canada Goldcorp 2.00% NSR Hinkey's Pond Canada Altius Resources
2.00% NSR Kizmet Canada Rimfire Minerals 1.00% NSR McKenzie Red
Lake Canada Goldcorp 1.00% NSR St Andrews Goldfields Mike's Lake
Canada Dynamite 2.00% NSR Resources Motherlode Canada Yukon-Nevada
Gold 2.00% NSR Greyhound Noyon Canada Campbell 3.00% NSR Resources
Pine Cove Canada New Island 7.50% NPI Resources (70%) Anaconda Gold
(30%) Rambler South Canada Altius Resources 2.00% NSR Shasta Canada
Sable Resources 0.50% NSR Swanson Canada Agnico Eagle 2.00% NSR
Mines Ltd. Tak Canada Southern Rio 5.00% NSR Resources Wilanour
Canada Goldcorp 15.00% NPI Bulldog/Creede United States
Hecla/Emerald 3.00% NSR (11) Ranch JV 1.00% NSR (11) Doby George
United States Western 2.00% NSR Exploration Keystone (12) United
States Energy Fuels 2.00% NSR Corporation La Jara United States
Laramide $0.25/lb (13) Resources Reese River United States X-Cal
Resources 2.00% NSR San Rafael United States Unknown 2.00% GSR
Silver Cloud United States Geologix 2.00% NSR Exploration Wood
Gulch United States Western 5.00% NSR Exploration TABLE 4 BARRICK
ROYALTY PORTFOLIO EXPLORATION PROPERTIES FOOTNOTES (1) Each listed
royalty rate is based on royalty documentation material provided to
Royal Gold by Barrick. (2) Royalty paid on dollars per tonne of ore
above 50,000 tonnes up to 500,000 tonnes. (3) Triumph Mining has
granted Dourado Resources an option to purchase the mining lease
subject to the royalty. (4) Royalty applies on production above
10,000 ounces. (5) Royalty applies on production up to 500,000
ounces. (6) Royalty rate is 2.0% for gold and 1.5% for all other
metals. (7) Royalty rate is 4.0% for grades at 1.5 g/t or less and
2.5% at grades above 1.5 g/t. (8) Cullen Exploration has granted a
right to Red Hill Iron to earn a 70% in all minerals (other than
iron ore) produced from the tenements subject to the royalty. (9)
Royalty is capped on a dollar basis and applies on production until
$1,760,000 has been paid. The 2.0% NSR applies on production
thereafter. (10) The 3.0% NSR royalty applies to production from an
area of the property referred to as the "Homestake Properties" and
the 2.0% NSR royalty applies to production from an area of the
property referred to as the "GeoNova Properties." (11) Royalty rate
is 3.0% on Homestake and Emerald unpatented claims; 1.0% on Emerald
patented claims. (12) Royalty currently held in trust by Barrick
for Royal Gold pending additional information about property
ownership and receipt of necessary consents. (13) Royalty is
payable per pound of uranium produced above 8 million pounds.
ROYALTY DEFINITIONS The Company's royalty portfolio contains
several different types of royalties which are defined as follows:
Royalty -- the right to receive a percentage or other denomination
of mineral production from a resource extraction operation. Gross
Smelter Return ("GSR") Royalty -- a defined percentage of the gross
revenue from a resource extraction operation, less, if applicable,
certain contract-defined costs paid by or charged to the operator.
Net Smelter Return ("NSR") Royalty -- a defined percentage of the
gross revenue from a resource extraction operation, less a
proportionate share of incidental transportation, insurance,
refining, and smelting costs. Net Value Royalty ("NVR") -- a
percentage of the gross revenue from a resource extraction
operation, less certain contract-defined costs. Net Profits
Interest ("NPI") Royalty -- a defined percentage of the gross
revenue from a resource extraction operation, after recovery of
certain contract-defined pre-production costs, and after deduction
of certain contract-defined mining, milling, processing,
transportation, administrative, marketing and other costs.
Contained Gold Returned ("CGR") -- a royalty in which payments are
made on contained ounces rather than recovered ounces. DATASOURCE:
Royal Gold, Inc. CONTACT: Karen Gross, Vice President and Corporate
Secretary of Royal Gold, Inc., +1-303-573-1660 Web site:
http://www.royalgold.com/
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