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Rio Tinto PLC - Anglo-Australian miner - Completes the sale of its Cortex gold royalty to RG Royalties LLC for $525 million in cash. RG Royalties is a direct wholly-owned subsidiary of Royal Gold Inc. Says that the Cortex royalty is a 1.2% gross production royalty on the Cortez gold mine that is operated by Nevada gold mines, a joint venture between Barrick Gold Corp and Newmont Corp, and 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 are expected to occur imminently, once the Cortez complex has produced a total of 15 million ounces of gold since 2008.
Rio Tinto Chief Financial Officer Peter Cunningham comments: ‘This transaction unlocks hidden value from our portfolio and releases cash immediately.’
Current stock price: 4,860.50 pence, down 0.1% on Tuesday morning
12-month change: down 22%
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