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Royal Gold completes US$75M gold streaming agreement with Rubicon Minerals

Date Closed

February 11, 2014

Lead Office



75.00 Million USD

On February, 11, 2014, Royal Gold Inc. announced that its wholly owned subsidiary, RGLD Gold AG, has entered into a US$75 million gold stream transaction with Rubicon Minerals Corporation that will finance a significant portion of the construction of the Phoenix Gold Project (the "Project") which is located at Red Lake, Ontario.

Royal Gold will provide Rubicon with a deposit of US$75 million to be used entirely towards the construction of the Project. Rubicon agrees to deliver 6.30% of the projected annual gold production from the Project until 135,000 ounces have been delivered and 3.15% thereafter. Royal Gold's cash purchase price per ounce will be 25% of the spot price at the time of delivery.

The deposit extends 1,650 meters below surface, and remains open at depth and along strike. Gold production is projected to commence 12-14 months following the completion of the remaining financing. The Red Lakegreenstone belt is host to one of Canada’s preeminent gold producing districts, the Red Lake District. Twenty-eight mines in the district have produced over 26 million ounces of gold since the 1930’s. The Project is located in this belt, which also hosts the Red Lake and Cochenour mines.

Rubicon Minerals, headquartered in Toronto, Ontario, is an advanced stage gold development company.

Royal Gold, headquartered in Denver, Colorado, is a precious metals royalty and stream company engaged in the acquisition and management of precious metal royalties, streams, and similar production based interests. The Company owns interests on 204 properties on six continents, including interests on 38 producing mines and 20 development stage projects.

McCarthy Tétrault LLP represented Royal Gold, as acquiror, with a team led by Christopher Langdon (Mining).