Royal Gold Acquires Benso Royalty from FairWest Energy Corporation
DENVER, Oct. 31 / -- ROYAL GOLD, INC. (Nasdaq: RGLD; TSX: RGL), the leading publicly-traded precious metals royalty company, today announced the purchase of a 1.5% net smelter return ("NSR") royalty from FairWest Energy Corporation ("FairWest") on the Benso gold concession in Ghana for $1.875 million. The Benso concession, controlled by Golden Star Resources Ltd ("Golden Star"), is located approximately 25 miles south of Golden Star's Wassa mine. Golden Star has reported that, as of June 15, 2007, the project contains 252,000 ounces of proven and probable reserves. The acquisition is subject to certain conditions including the registration of the royalty in Ghana and approval of the transfer of the royalty by the Minister of Lands, Forestry, and Mines of the Republic of Ghana.
Tony Jensen, Royal Gold's President and Chief Executive Officer, commented, "We are pleased to add another near term royalty to our development stage portfolio. Golden Star recently announced construction of the road from Benso to the Wassa processing plant and plans to begin haulage of high grade ore from the project in the third quarter of calendar 2008. This new acquisition brings us another royalty in West Africa and will complement our existing portfolio."
Golden Star Resources Ltd. (Amex: GSS; TSX: GSC), a Denver-based company, holds a 90% equity interest in Golden Star (Bogoso/Prestea) Limited and Golden Star (Wassa) Limited, which respectively own the Bogoso/Prestea and Wassa open-pit gold mines in Ghana. In addition, Golden Star has an 81% interest in the currently inactive Prestea Underground mine in Ghana, as well as gold exploration interests elsewhere in Ghana, in other parts of West Africa and in the Guiana Shield of South America.
FCMN Contact: kgross@royalgold.com
Source: Royal Gold, Inc.
CONTACT:
Karen Gross
Vice President and Corporate Secretary of Royal Gold, Inc.
+1-303-573-1660
Web site: http://www.royalgold.com/
