RE: Royal Gold ?Sorry, here is the whole thing. Not sure if there is any new info.
Item 8.01 Other Events
On January 17, 2011, Royal Gold, Inc. (“Royal Gold”) released its security interests in certain
collateral that it held pursuant to the Amended and Restated Funding Agreement dated
February 22, 2006 (the "Funding Agreement") between Royal Gold, Inc. and Somita SA
(“Somita”), a 90% owned subsidiary of High River Gold Mines Ltd. (“High River”) and the
operator of the Taparko mine. Royal Gold invested $35 million for the development of the
Taparko mine under the Funding Agreement. As security for the Company's investment, High
River pledged certain equity investments in public companies held by High River (“Pledge I”),
and two of High River's subsidiaries pledged their equity interests in Somita and High River
(West Africa) Ltd., the corporate parent of Somita (“Pledge II”). Pursuant to their terms, Pledge
I would remain in effect until certain production and performance standards have been attained at
the Taparko mine sufficient to satisfy the Completion Test, as defined in the Funding Agreement,
and Pledge II would remain in effect until satisfaction of certain requirements as provided in the
construction contract between Somita and its construction contractor. Following discussions
among Royal Gold and High River concerning the results of the Completion Test, Royal Gold
agreed to release its security interests in the collateral held pursuant to Pledge I and Pledge II,
and High River agreed, among other things, to provide certain insurance coverage on the
Taparko mine for the benefit of Royal Gold.
During the quarter ended September 30, 2010, the $35 million cap associated with the 15% TBGSR1 was achieved and the 2.0% GSR royalty (TB-GSR3) became effective. The TB-GSR1
and the sliding-scale TB-GSR2 royalties terminated upon receipt of the remaining amounts due
under the $35 million cap, which occurred in October 2010. The TB-GSR3 royalty covers all
gold produced from the Taparko mine. TB-MR1, a 0.75% GSR milling royalty which applies to
ore that is mined outside of the defined area of the Taparko project, also remains in effect.