Royal Gold, Inc. (RGLD), a precious metals stream and royalty company, on Wednesday announced that its wholly-owned subsidiary RGLD Gold AG signed a gold purchase and a net smelter return royalty agreement for all metals from the Warintza Project in southeastern Ecuador, operated by Solaris Resources.
The total cash consideration is $200 million and is expected to be paid in three cash installments.
The company plans to fund the first $100 million installment of the Advance with cash on hand and cover the remaining $100 million using existing cash resources.
The company plans to start early project works in the second half of 2026, make a construction decision by the end of 2026, and begin potential production by 2030.
Royal Gold's acquisition of a stream and royalty interest in the Warintza Project offers shareholders exposure to a large-scale, long-life copper resource with significant growth potential.
The deal includes protection against development delays and change of control, ensuring full repayment and continued royalty benefits.
Under the Gold Stream Agreement, Royal Gold AG will receive 20 ounces of gold per million pounds of recovered copper, paying 20 percent of the spot gold price until 90,000 ounces are delivered, then 60 percent thereafter.
Under the Royalty Agreement, Royal Gold AG will receive a 0.30% net smelter return or NSR royalty on all metals from the expanded area, increasing annually by 0.0375% to a maximum of 0.60% by 2033 unless gold deliveries begin earlier.
In the pre-market trading, Royal Gold is 0.28% higher at $178.06 on the Nasdaq.
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