Royal Gold announces execution of additional agreement with Centerra Gold

Royal Gold (RGLD) announced that its wholly owned subsidiary, RGLD Gold AG, has executed an additional agreement with Centerra Gold (CGAU) and its wholly-owned subsidiary, Thompson Creek Metals Company, with respect to the Mount Milligan Mine that provides near-term cash and gold consideration to Royal Gold in return for long-term cost support that will allow an extension of the mine life of Mount Milligan to 2035 and the potential for a future increase in mine life beyond 2035. Royal Gold holds a stream interest at the Mount Milligan Mine comprising a gold stream that provides for delivery of 35% of the payable gold in return for a cash payment of $435 per ounce, and a copper stream that provides for delivery of 18.75% of the payable copper in return for a cash payment of 15% of the spot copper price. The Existing Stream Agreement remains in place and is unaffected by these additional agreements. Significant consideration payable to Royal Gold including cash and gold in the near term, and a free cash flow interest in the long term. Royal Gold will receive approximately $125M in near-term consideration, comprised of $24.5M of cash and 50,000 ounces of gold, and a long-term free cash flow interest on the Mount Milligan Mine. Long-term cost support to the Mount Milligan Mine to allow for an extended mine life. Royal Gold will provide cost support payments for metal deliveries starting in approximately 2030 that provide a basis for an immediate reserve increase and extension of the Mount Milligan mine life to 2035.