Royal Gold, Inc. has agreed to purchase an additional 15 percent of the gold production from Denver-based Thompson Creek Metal Company’s Mt. Milligan mine in British Columbia, the company announced today.
Royal Gold, which is also based in Denver, will pay $270 million and cash payments equal to the lesser of $435 or the prevailing market price for each payable ounce of gold delivered to Royal Gold.
Combined with the an earlier purchase of Milligan interests Royal Gold will be entitled to 40 percent of the payable gold produced from Mt. Milligan for total payment of $581.5 million and the price per ounce payment, the company said.
The Mt. Milligan project is in the middle stages of construction, and Thompson Creek estimates that production will commence in late calendar 2013.
