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Transaction/Case Details

Royal Gold announces agreement to acquire gold and silver stream on Barrick’s Interest in the Pueblo Viejo mine

DATE CLOSED

August 5, 2015

BUSINESS SECTOR

Mining & Metals

LEAD OFFICE

Toronto


OVERVIEW

On August 5, 2015, Royal Gold, Inc. announced that its wholly owned subsidiary, RGLD Gold AG (“Royal Gold”), entered into a $610 million Precious Metals Purchase and Sale Agreement with a wholly owned subsidiary of Barrick Gold Corporation, BGC Holdings Ltd. (“Barrick”), to purchase a percentage of the gold and silver production attributable to Barrick’s 60% interest in the Pueblo Viejo mine located in the Dominican Republic (“Pueblo Viejo”).

Pueblo Viejo is an open-pit mining operation located 100 kilometers northwest of Santo Domingo. It is managed by a joint venture between two of the world’s largest gold producers, with Barrick owning 60% and responsible for operations and Goldcorp Inc. owning the remaining 40%. The mine began production in 2013, and is the only primary gold mine in the world with annual production of more than one million ounces of gold (100% basis), at all-in sustaining costs below US$700 per ounce. On a 100% basis, 2014 gold production was approximately 1.11 million ounces, silver production was 3.85 million ounces, and all-in sustaining costs were $588 per ounce. Total mine proven and probable reserves were 15.50 million ounces of gold and 97.20 million ounces of silver, while measured and indicated resourcesii were 10.50 million ounces of gold and 61.20 million ounces of silver as of December 31, 2014.

Royal Gold is a global streaming and royalty company. 

McCarthy Tétrault advised Royal Gold with a team that was led by Brian Graves and Christopher Langdon (Mining and M&A), and included Lama Sabbagh, Claire Gowdy, and Jennifer Organ (Mining and M&A).

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