Royal Gold (Nasdaq:RGLD) (TSE:RGL) announced it has acquired rights to over 1 percent more for net smelter return royalty on the Pascua-Lama project of Barrick Gold (NYSE:ABX) (TSE:ABX) in South America.
The acquisition included three separate deals with individuals who held the stakes in the project, which they paid $68 million combined for.
Royal paid $40 million upfront for an immediate 0.6 percent royalty, and will pay $28 million before or on October 9 to secure the other 0.4 percent.
Total royalty interest for Royal in the project will grow to 5.23 net smelter at gold prices over $800 an ounce.
Also included in the transaction was a 0.2 percent fixed-rate copper royalty which kicks in after January 1, 2017. That will bring the total copper royalty to 1.05 percent in the project.
Production from Pascu-Lama is projected to begin in the first quarter of 2013, according to Royal Gold.
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