RNS Number : 5814U

Rio Tinto PLC

02 August 2022

 2 August 2022 

Rio Tinto completes sale of Cortez Gold Royalty for $525 million in cash

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

The Cortez Royalty is a 1.2% [1] gross production royalty on (i) the Cortez gold mine that is operated by Nevada Gold Mines, a joint venture between Barrick Gold Corporation ("Barrick") and Newmont Corporation; and (ii) 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 ounces of gold since 2008. This is expected to occur imminently.

Rio Tinto Chief Financial Officer Peter Cunningham said: "This transaction unlocks hidden value from our portfolio and releases cash immediately."

[1] Royalty calculated as 1.2% at current gold prices. The royalty rate is determined based on a scale from 0% at gold prices less than US$400/oz up to 3% at gold prices greater than $900/oz, calculated on 40% of the production from the undivided Cortez Complex land package.

Contacts  Please direct all enquiries to media.enquiries@riotinto.com 
Media Relations, UK         Media Relations, Australia 
 Illtud Harri                Jonathan Rose 
 M +44 7920 503 600          M +61 447 028 913 
 Matthew Klar                Matt Chambers 
 M + 44 7796 630 637         M +61 433 525 739 
 David Outhwaite             Jesse Riseborough 
 M +44 7787 597 493          M +61 436 653 412 
 Media Relations, Americas   Investor Relations, Australia 
 Simon Letendre              Amar Jambaa 
 M +514 796 4973             M +61 472 865 948 
 Malika Cherry 
 M +1 418 592 7293 
 Investor Relations, UK 
 Menno Sanderse 
 M: +44 7825 195 178 
 David Ovington 
 M +44 7920 010 978 
 Clare Peever 
 M +44 7788 967 877 
Rio Tinto plc               Rio Tinto Limited 
 6 St James's Square         Level 7, 360 Collins Street 
 London SW1Y 4AD             Melbourne 3000 
 United Kingdom              Australia 
                             T +61 3 9283 3333 
 T +44 20 7781 2000          Registered in Australia 
 Registered in England       ABN 96 004 458 404 
 No. 719885 

This announcement is authorised for release to the market by Steve Allen, Rio Tinto's Group Company Secretary.


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(END) Dow Jones Newswires

August 02, 2022 02:15 ET (06:15 GMT)

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