Cortez partners increase stake in Royal Gold

The joint venture that operates the South Pipeline gold project in Nevada’s Crescent Valley has increased its hold on Royal Gold (NASDAQ).

The Cortez joint venture, a partnership between Placer Dome (TSE) and Kennecott, exercised its option for all of its Class A and Class B warrants for the purchase of common stock in Royal Gold, which owns a 20% net profits interest in the South Pipeline deposit.

The Class A warrants permitted Cortez to buy 300,000 shares at US$2 per share. The Class B warrants permitted Cortez to buy another 300,000 shares at US$3 each. The purchase price of the 600,000 shares totalled US$1.5 million.

Cortez now owns 1.1 million shares in Royal Gold, which amounts to 7.1% of the shares of the company.