Royal Gold Acquires Stream and Royalty Interests on the Large-Scale, Long-Life, Warintza Copper-Gold-Molybdenum Development Project in Ecuador
Royal Gold, Inc. (NASDAQ: RGLD) (together with its subsidiaries, “Royal Gold” or the “Company,” “we” or “our”) announced today that its wholly-owned subsidiary RGLD Gold AG (“RG AG”), has entered into a gold purchase agreement (“Gold Stream Agreement”), and a separate net smelter return royalty agreement (“Royalty Agreement”) for all metals, produced from the Warintza Project (“Warintza”, or the “Project”) in southeastern Ecuador, indirectly owned and operated by Solaris Resources, Inc. (“Solaris”), for total cash consideration of $200 million.
“I am pleased to announce these agreements on an emerging multi-generational copper-gold-molybdenum development project,” commented Bill Heissenbuttel, President and CEO of Royal Gold. “Royal Gold will provide Solaris with upfront funding to advance development through to a final investment decision and fully repay existing indebtedness. Warintza is at an early stage in its development and is one of the only large-scale copper-gold-molybdenum projects that is not controlled by a major mining company, and the creative transaction structure offers Solaris flexibility as they consider strategic alternatives to advance the Project while protecting Royal Gold should development not proceed according to current plans.”