REG - Rio Tinto - Rio Tinto completes sale of Cortez Gold Royalty

Rio TintoAnnouncement

02/08/2022 07:15

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RNS Number : 5814U  Rio Tinto PLC  02 August 2022

 2 August 2022

 

Rio Tinto completes sale of Cortez Gold Royalty for $525 million in cash

Rio Tinto has completed the sale of a royalty it holds on an area including
the Cortez mine operational area and the Fourmile development project in
Nevada (the "Cortez Complex") to RG Royalties LLC, a direct wholly-owned
subsidiary of Royal Gold Inc., for $525 million in cash.

 

The Cortez Royalty is a 1.2% 1  (#_ftn1) gross production royalty on (i) the
Cortez gold mine that is operated by Nevada Gold Mines, a joint venture
between Barrick Gold Corporation ("Barrick") and Newmont Corporation; and (ii)
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 commence once the
Cortez Complex has produced a total of 15 million ounces of gold since 2008.
This is expected to occur imminently.

 

Rio Tinto Chief Financial Officer Peter Cunningham said: "This transaction
unlocks hidden value from our portfolio and releases cash immediately."

 

 

 

 

 1  Royalty calculated as 1.2% at current gold prices. The royalty rate is
determined based on a scale from 0% at gold prices less than US$400/oz up to
3% at gold prices greater than $900/oz, calculated on 40% of the production
from the undivided Cortez Complex land package.

 

 

 

 

 

 

 

 

 Contacts  Please direct all enquiries to media.enquiries@riotinto.com

 

 Media Relations, UK         Media Relations, Australia

 Illtud Harri                Jonathan Rose

 M +44 7920 503 600          M +61 447 028 913

 Matthew Klar                Matt Chambers

 M+ 44 7796 630 637          M +61 433 525 739

 David Outhwaite             Jesse Riseborough

 M +44 7787 597 493          M +61 436 653 412

 Media Relations, Americas   Investor Relations, Australia

 Simon Letendre              Amar Jambaa
 M +514 796 4973

                           M +61 472 865 948
 Malika Cherry
 M  +1 418 592 7293

 Investor Relations, UK

 Menno Sanderse

 M: +44 7825 195 178

 David Ovington

 M +44 7920 010 978

 Clare Peever

 M +44 7788 967 877

 Rio Tinto plc               Rio Tinto Limited

 6 St James's Square         Level 7, 360 Collins Street

London SW1Y 4AD

United Kingdom             Melbourne 3000

 T +44 20 7781 2000          Australia

Registered in England

 No. 719885

                             T +61 3 9283 3333

                             Registered in Australia

                             ABN 96 004 458 404

 

This announcement is authorised for release to the market by Steve Allen, Rio
Tinto's Group Company Secretary.

 

riotinto.com

 

 

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