Expanded program for Royal Gold

American junior Royal Gold (NASDAQ) will expand its grassroots exploration on lands owned by Union Pacific (NYSE).

In an extension of the original agreement, the company will look for gold, silver, platinum and other minerals or gemstones on properties in Utah, Wyoming and Colorado.

Royal Gold can conduct preliminary exploration throughout Union Pacific’s holdings in three states until the end of 1995, when it must choose 50,000 acres for more extensive exploration. It is obligated to spend US$500,000 on the project by the end of the year, and US$2.1 million on exploration and development for the full term of the agreement.

Once Royal Gold identifies a deposit, it has the option of farming out the development to third parties, developing it in conjunction with Union Pacific Minerals, or developing it on its own.

Union Pacific’s mineral interests (which thus far have received little, if any, exploration for precious metals) extend over 7.3 million acres in 24 states (primarily Colorado, Wyoming and Utah).