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Rio Tinto completes sale of Cortez Gold Royalty

Published by
Global Mining Review,

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

The Cortez Royalty is a 1.2% gross production royalty on:

  1. The Cortez gold mine that is operated by Nevada Gold Mines, a joint venture between Barrick Gold Corp. and Newmont Corp.
  2. 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 oz of gold since 2008. This is expected to occur imminently.

Peter Cunningham, Chief Financial Officer, Rio Tinto, comments:

“This transaction unlocks hidden value from our portfolio and releases cash immediately.”

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