On September 30, 2014, Royal Gold acquired a 2.0% net smelter return (NSR) royalty and a 3.0% NSR royalty on all metals produced which royalties were held by private parties over areas comprising the Manh Choh Project (then called the Tetlin Gold Project) for total consideration of $6.0 million.
On January 8, 2015, Royal Gold, through its wholly-owned subsidiary, Royal Alaska, LLC (“Royal Alaska”), and Contango ORE, Inc., through its wholly-owned subsidiary CORE Alaska, LLC (together, “Contango”), entered into a limited liability company agreement to form Peak Gold, LLC (“Peak Gold”), a joint venture for exploration and advancement of the Manh Choh Project. At the time of the initial agreement, Contango contributed all of its assets relating to the Tetlin Project to Peak Gold, including a mining lease and certain State of Alaska mining claims, and Royal Alaska contributed $5.0 million in cash. Royal Alaska subsequently acquired 40% of the membership interest in Peak Gold by making further contributions of $25.0 million through 2018.
On June 28, 2018, Royal Gold acquired 682,556 shares of common stock of Contango ORE, Inc. and, on October 3, 2018, an additional 127,188 shares, for consideration of $26 per share from certain individual stockholders of Contango ORE, Inc.
On September 30, 2020, Royal Gold announced an agreement to sell its 40% interest in the Manh Choh Project and our common share position in Contango Ore, Inc. to Kinross. Consideration received for the sale of these interests included cash of $61.3 million and an incremental 28% net smelter return royalty on silver produced from an area of interest which includes the current Manh Choh Project resource area. Peak Gold, LLC retains the right to acquire 50% of the incremental 28% net smelter return royalty on silver for $4 million. Additionally, as part of a separate transaction with Contango, Royal Gold received an incremental 1% net smelter return royalty on all metals produced from certain State of Alaska mining claims that were acquired by a wholly owned subsidiary of Contango, which increased Royal Gold’s royalty on this area from 2% to 3%.