Barrick Gold sells stake to US group

Barrick Gold Ltd, operator of Porgera gold mine, has sold an additional 1% right net smelter return (NSR) royalty on the miner’s Pascua-Lama project in South America for US$86 million (K238.8 million).
The buyer was US-based Royal Gold Inc, according to Business Wire.
The online business newspaper said Royal Gold, which bought an additional interest in separate transactions from three individuals, paid US$40 million (K111 million) for an equivalent of 0.60% royalty.
Royal Gold will later acquire the remaining 0.40% royalty interest once it paid US$28 million (K77 million) on or before Oct 29 this year.
Business Wire said once the acquisition is completed, Royal Gold’s total royalty interest would increase to 5.23% NSR, at gold prices above US$$800 (K2,222) per ounce.
The transactions also include a 0.20% fixed-rate copper royalty that takes effect after Jan 1, 2017, increasing Royal Gold’s copper royalty interest to 1.05%.
Tony Jensen, chief executive and president of Royal Gold, said: “We are pleased to, once again, increase our royalty interest on this long-life, world-class gold project –  having raised our royalty interest this year from 1.08% to 5.23%, at gold prices above US$800 (K2,222) per ounce.
“Upon completion of mine construction, we expect that Pascua-Lama will become one of our cornerstone royalty assets for the next couple of decades.
“This transaction reinforces our strategic goals of acquiring gold royalties on exceptional deposits which are located in attractive host countries and managed by experienced operators,” Jenson added.