Royal Gold, through its wholly-owned subsidiary RGLD Gold AG, owns the right
to purchase 100% of payable gold until 900,000 ounces have been delivered,
and 50% thereafter. The cash purchase price equals 15% of the monthly
average gold price for the month preceding the delivery date for all gold
purchased. Payable gold is calculated as 89% of contained gold in
concentrate.
Originally, in January 2010, Royal Gold acquired a royalty interest on
Andacollo for $217.9 million in cash and 1,204,136 shares of Royal Gold
common stock (valued at approximately $53.4 million on the date of
acquisition). Under the agreement, Royal Gold, Inc. was to receive 75% of
the gold produced from the sulfide portion of the Andacollo deposit until
910,000 payable ounces of gold were sold, after which Royal Gold was to
receive 50% of all future payable gold production from the property.
Later, in July 2015, and after production of over 259,000 ounces of payable
gold subject to the royalty, Royal Gold announced it had agreed to sell its
royalty interest on Andacollo to Compañía Minera Teck Carmen de Andacollo
for $345 million and terminate the royalty agreement. RGLD Gold AG entered
into a new gold offtake agreement with Compañía Minera Teck Carmen de
Andacollo for the right to purchase 100% of payable gold from Andacollo
until 900,000 ounces have been delivered, and 50% thereafter, for $525
million. Importantly, the new stream interest features a larger interest in
gold over a longer period and covers an expanded footprint encompassing
additional mineral rights relative to the previous stream interest.
*
Detailed information on our interest can be found on the
Portfolio Asset Summary
table