Royal secures US$10m

Denver — Royal Gold (RGLD-Q) has reached an agreement with HSBC Bank USA for US$10 million in financing. The funds will be used to acquire royalty assets.

The financing will be secured by a mortgage on one of the company’s royalties on the giant Pipeline gold complex in central Nevada, while any assets purchased will serve as collateral.

The term of the facility will mature June 2005, but the line of credit could be extended under two one-year options. The interest rate will be linked to the London Interbank Offer Rate.

Royal Gold has three royalties at Pipeline, and one at the Bald Mountain mine in eastern Nevada.