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International Royalty acquires four royalties from Atna Resources Ltd.

Publication: PR Newswire
Publication Date: 04-SEP-08
Format: Online
Delivery: Immediate Online Access

Article Excerpt
AMEX:ROY TSX:IRC

DENVER, CO, Sept. 4 /PRNewswire-FirstCall/ -- International Royalty Corporation (the "Company" or "IRC") is pleased to announce that it has acquired four mineral royalties from Atna Resources Ltd. ("Atna") for USAA $20AA million in cash. The portfolio includes a net smelter return ("NSR") interest in all precious metals produced from the development-stage Wolverine massive sulphide project in the Yukon. These acquisitions expand the number of royalties in IRC's portfolio to 84.

The Wolverine royalty is a sliding-scale, net smelter return that applies to silver and gold production. The royalty rate is a step function based on the price of silver. At silver prices below US$5.00 per ounce, there is no royalty payment; at prices between US$5.00 and US$7.50 per ounce, the rate is 3.778%; and at prices above US$7.50, the rate is 9.445%. For illustration purposes, using a US$830 per ounce gold price and a US$13.50 per ounce silver price, IRC would expect to receive approximately US$6 million annually from...

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