UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of
The
Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported) January 17, 2011
(Exact
name of registrant as specified in its charter)
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Delaware
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001-13357
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84-0835164
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(State
or other jurisdiction
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(Commission
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(IRS
Employer
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of
incorporation)
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File
Number)
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Identification
No.)
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1660 Wynkoop Street, Suite 1000, Denver,
CO
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80202-1132
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code 303-573-1660
(Former
name or former address, if changed since last report.)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
¨ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
¨ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
¨ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
¨ Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item
8.01 Other
Events
On
January 17, 2011, Royal Gold, Inc. (“Royal Gold”) released its security
interests in certain collateral that it held pursuant to the Amended and
Restated Funding Agreement dated February
22, 2006 (the "Funding Agreement") between Royal Gold, Inc. and Somita SA
(“Somita”), a 90% owned subsidiary of High River Gold Mines Ltd. (“High River”)
and the operator of the Taparko mine. Royal Gold invested $35 million
for the development of the Taparko mine under the Funding
Agreement. As security for the Company's investment, High River
pledged certain equity investments in public companies held by High River
(“Pledge I”), and two of High River's subsidiaries pledged their equity
interests in Somita and High River (West Africa) Ltd., the corporate parent of
Somita (“Pledge II”). Pursuant to their terms, Pledge I would remain
in effect until certain production and performance standards have been attained
at the Taparko mine sufficient to satisfy the Completion Test, as defined in the
Funding Agreement, and Pledge II would remain in effect until satisfaction of
certain requirements as provided in the construction contract between Somita and
its construction contractor. Following discussions among Royal Gold
and High River concerning the results of the Completion Test, Royal Gold agreed
to release its security interests in the collateral held pursuant to Pledge I
and Pledge II, and High River agreed, among other things, to provide certain
insurance coverage on the Taparko mine for the benefit of Royal
Gold.
During
the quarter ended September 30, 2010, the $35 million cap associated with the
15% TB-GSR1 was achieved and the 2.0% GSR royalty (TB-GSR3) became
effective. The TB-GSR1 and the sliding-scale TB-GSR2 royalties
terminated upon receipt of the remaining amounts due under the $35 million cap,
which occurred in October 2010. The TB-GSR3 royalty covers all gold
produced from the Taparko mine. TB-MR1, a 0.75% GSR
milling royalty which applies to ore that is mined outside of the defined area
of the Taparko project, also remains in effect.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Royal
Gold, Inc.
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(Registrant)
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Dated: January
21, 2011
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By:
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/s/ Bruce C. Kirchhoff
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Name:
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Bruce
C. Kirchhoff
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Title:
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Vice
President and General Counsel
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