Royal Gold, Inc. (NASDAQ:RGLD) (TSX:RGL) today announced it has agreed to acquire 25% of the payable gold produced from the Mt. Milligan copper-gold project in British Columbia from Thompson Creek Metals Company.

The press release is quoted as saying:

Royal Gold will provide $226.5 million at closing of Thompson Creek`s acquisition of Terrane and thereafter $85.0 million over the construction period of the Mt. Milligan project. In addition, Royal Gold will pay Thompson Creek a cash payment equal to the lesser of $400 or the prevailing market price for each payable ounce of gold until 550,000 ounces have been delivered to Royal Gold and the lesser of $450 or the prevailing market price for each additional ounce thereafter. Royal Gold will fund this transaction with cash on hand.

Click here to access the entire press release