Royal Gold acquires gold stream on Rubicon Minerals’ Phoenix Gold project

Royal Gold (RGLD +3.9%) enters into a $75M gold stream transaction with Rubicon Minerals (RBY +3.4%) that will finance a significant portion of the construction of RBY's Phoenix Gold Project in Ontario.

RGLD will make advance deposit payments totaling $75M in five installments over the next 12 months toward the construction of Phoenix Gold; RBY will sell and deliver 6.3% of any gold produced from the project until 135K oz. have been delivered, and 3.15% thereafter.

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Comments (3)
  • davestock
    , contributor
    Comments (2) | Send Message
    Loves me some RGLD.
    11 Feb 2014, 08:39 PM Reply Like
  • Derrick Lilly
    , contributor
    Comments (366) | Send Message
    RBY has the greater upside potential.
    11 Feb 2014, 08:54 PM Reply Like
  • David Dana
    , contributor
    Comments (135) | Send Message
    I don't like the deal. It cuts into Rubicon's top line. This is the second deal Rubicon has made. They previously did a deal with Franco Nevada which also cuts into their top line. The salaries are secure for top management but the stockholders get the shaft! Too bad!
    13 Feb 2014, 01:10 AM Reply Like
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