Royal Gold Announces Common Stock Offering

DENVER, April 6 /PRNewswire-FirstCall/ — ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), a leading precious metals royalty company, announced today that it intends to offer 6.5 million shares of its common stock pursuant to the Company’s shelf registration statement filed with the Securities and Exchange Commission and a shelf prospectus filed with certain Canadian Securities regulatory authorities. The Company has granted the underwriters a 30-day option to purchase up to 975,000 additional shares of common stock to cover over-allotments, if any.

Royal Gold will use a portion of the net proceeds of this offering to fund the Andacollo transaction that was announced today. Pursuant to the acquisition agreement, the initial cash portion of the purchase price of $100 million will be increased by 50% of the net proceeds from this offering, and the initial stock portion of the purchase price of 4,454,136 shares will be decreased by 50% of the shares sold in this offering. The remaining net proceeds will be used to fund future acquisitions and for general corporate purposes. Further description is available in the prospectus supplement for this offering.

HSBC Securities (USA) Inc. is the global coordinator and acting as joint book-runner with Goldman, Sachs & Co. and Scotia Capital (USA) Inc. Merrill Lynch & Co. and NBF Securities (USA) Corp. are acting as co-managers.

This offering may be made only by means of a prospectus and a prospectus supplement. Once filed, copies of the preliminary prospectus supplement and the base shelf prospectus relating to the offering may be obtained by either contacting the following underwriters or by accessing the Securities and Exchange Commission website, www.sec.gov:

    HSBC Securities (USA) Inc.
    Attn: Prospectus Dept.
    452 Fifth Avenue
    New York, NY 10018
    Phone: 212-525-0860
    Fax: 646-366-3165
    Email: ny.equity.syndicate@us.hsbc.com

    Goldman, Sachs & Co.
    Attn: Prospectus Dept.
    85 Broad Street
    New York, NY 10004
    Phone: 212-902-1171 or
    Toll free:  866-471-2526
    Fax: 212-902-9316
    Email: Prospectus-ny@ny.email.gs.com

    Scotia Capital (USA) Inc.
    Attn: Equity Capital Markets
    One Liberty Plaza, 25th Floor
    New York, NY 10006
    Phone:  212-225-6853
    Fax:  212-225-6852
    Email: sarah_tilley@scotiacapital.com

In Canada, a copy of the prospectus and prospectus supplement may be obtained from:

    HSBC Securities (Canada) Inc.
    Attn: Equity Capital Markets (Stephanie Pridmore)
    70 York Street, 4th Floor
    Toronto, Ontario  M5J 1S9
    Canada
    Phone: 416-868-7761
    Fax: 416-868-306
    Email: ecm@hsbc.ca

    Goldman, Sachs & Co.
    Attn: Prospectus Dept.
    85 Broad Street
    New York, NY  10004
    Phone: 212-902-1171 or
    Toll free: 866-471-2526
    Fax: 212-902-9316
    Email: Prospectus-ny@ny.email.gs.com

    Scotia Capital Inc.
    Attn: Equity Capital Markets
    (Paul Angelopoulos)
    40 Kings Street West, 65th Floor
    Toronto, Ontario  M5X 2X6
    Canada
    Phone: 416-862-5837
    Fax: 416-863-7420
    Email: Equity_capital_markets@scotiacapital.com

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the prospectus supplement, the prospectus or the Company’s shelf registration statement. A registration statement relating to the securities has been filed with the Securities and Exchange Commission and became effective upon filing. A preliminary prospectus supplement relating to the offering will be filed with the Securities and Exchange Commission. A shelf prospectus has been filed with the securities regulatory authorities in certain provinces in Canada and a preliminary prospectus supplement will be filed with such regulatory authorities.

Royal Gold is a precious metals royalty company engaged in the acquisition and management of precious metal royalty interests. The Company owns royalties on 117 properties on five continents, including royalties on 25 producing mines and 10 development stage projects. Royal Gold is publicly traded on the NASDAQ Global Select Market under the symbol “RGLD,” and on the Toronto Stock Exchange under the symbol “RGL.”

    For further information, please contact:  

    Karen Gross,
    Vice President and Corporate Secretary
    (303) 573-6504

Cautionary “Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: With the exception of historical matters, the matters discussed in this press release include forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projections or estimates contained herein. Such forward-looking statements include statements regarding future sales of common stock and the use of proceeds from such sales. Factors that could cause actual results to differ materially from projections or estimates include, among others, precious metals prices, economic and market conditions, as well as other factors described in our Annual Report on Form 10-K/A, and other filings with the Securities and Exchange Commission. Most of these factors are beyond the Company’s ability to predict or control. The Company disclaims any obligation to update any forward-looking statement made herein. Readers are cautioned not to put undue reliance on forward-looking statements.

SOURCE Royal Gold, Inc.