Rio Tinto completes sale of Cortez Gold Royalty for $525 million in cash
August 02 2022 - 2:21AM
Business Wire
Rio Tinto has completed the sale of a royalty it holds on an
area including the Cortez mine operational area and the Fourmile
development project in Nevada (the “Cortez Complex”) to RG
Royalties LLC, a direct wholly-owned subsidiary of Royal Gold Inc.,
for $525 million in cash.
The Cortez Royalty is a 1.2%1 gross production royalty on (i)
the Cortez gold mine that is operated by Nevada Gold Mines, a joint
venture between Barrick Gold Corporation (“Barrick”) and Newmont
Corporation; and (ii) the Fourmile project which is 100% owned and
operated by Barrick. Rio Tinto obtained the royalty as partial
consideration for the sale of its 40% interest in the Cortez
Complex to Barrick in 2008. Royalty payments commence once the
Cortez Complex has produced a total of 15 million ounces of gold
since 2008. This is expected to occur imminently.
Rio Tinto Chief Financial Officer Peter Cunningham said: “This
transaction unlocks hidden value from our portfolio and releases
cash immediately.”
This announcement is authorised for release to the market by
Steve Allen, Rio Tinto’s Group Company Secretary.
riotinto.com
____________________________ 1 Royalty calculated as 1.2% at
current gold prices. The royalty rate is determined based on a
scale from 0% at gold prices less than US$400/oz up to 3% at gold
prices greater than $900/oz, calculated on 40% of the production
from the undivided Cortez Complex land package.
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