UPDATE 1-Royal Gold ups royalty interests on Barrick’s project

* Buys more royalty interests on Pascua-Lama gold project

* Says total acquisition price of $68 mln

* Expects first production from the project in Q1 of 2013

July 6 (BestGrowthStock) – U.S. mining royalty company Royal Gold
Inc (RGLD.O: ) (RGL.TO: ) said it acquired rights to an additional
1 percent net smelter return royalty on Barrick Gold Corp’s
(ABX.TO: ) Pascua-Lama project in South America for $68 million.

The company, which bought the additional interest in
separate transactions from three individuals, paid $40 million
to immediately acquire 0.6 percent royalty.

A deferred payment of $28 million will be made on or before
Oct. 29 to acquire the remaining 0.4 percent interest.

Royal Gold’s total royalty interest will increase to 5.23
percent net smelter return after the completion of the
acquisition at gold prices above $800 per ounce.

The company said the transactions also include a 0.2
percent fixed-rate copper royalty that takes effect after Jan.
1, 2017, increasing the company’s copper royalty interest to
1.05 percent.

The Pascua-Lama project, located on the border of Chile and
Argentina, is in the early stages of construction with initial
commissioning scheduled for late 2012 and first production
expected in the first quarter of calendar 2013, Royal Gold said
in a statement.

Royal Gold shares were down 2 percent at C$47.15 Tuesday
afternoon on the Toronto Stock Exchange.
(Reporting by Koustav Samanta in Bangalore)

UPDATE 1-Royal Gold ups royalty interests on Barrick’s project