Business Description
Royal Gold, Inc., together with its subsidiaries, is engaged in the business
of acquiring and managing precious metal streams, royalties, and similar interests.
We seek to acquire existing stream and royalty interests or to finance projects
that are in production or in the development stage in exchange for stream or
royalty interests.
Acquisition and Management of Stream Interests—A metal stream is a purchase
agreement that provides, in exchange for an upfront deposit payment, the right
to purchase all or a portion of one or more metals produced from a mine, at
a price determined for the term of the agreement. As of June 30, 2016, we owned
stream interests on four producing properties and three development stage properties.
On July 5, 2016, we entered into a binding commitment letter with Centerra
Gold Inc. ("Centerra") setting forth the key terms and conditions
of a future amendment to our Mount Milligan streaming agreement in connection
with the proposed acquisition by Centerra of Thompson Creek Metals Company Inc.
("Thompson Creek") by Plan of Arrangement under the Arrangement Agreement
executed between Centerra and Thompson Creek, as announced on July 5, 2016 (the
"Centerra Acquisition"). Thompson Creek is the parent company of Terrane
Metals Corp. ("Terrane"), which owns and operates the Mount Milligan
copper-gold mine. Our obligation to amend the Mount Milligan streaming agreement
is subject to the consummation of the Centerra Acquisition and other customary
conditions set forth in the commitment letter.
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