EX-5.1 2 d50910exv5w1.htm OPINION OF HOGAN & HARTSON LLP exv5w1
 

Exhibit 5.1
(HOGAN & HARTSON LOGO)   (HOGAN & HARTSON LETTERHEAD)
November 5, 2007
Board of Directors
Royal Gold, Inc.
1660 Wynkoop Street, Suite 1000
Denver, Colorado 80202
Ladies and Gentlemen:
We are acting as counsel to Royal Gold, Inc., a Delaware corporation (the “Company”), in connection with its registration statement on Form S-3 (the “Registration Statement”), filed with the Securities and Exchange Commission relating to the proposed public offering of up to $100,000,000 in aggregate amount of the Company’s mandatory convertible preferred stock, par value $0.01 per share (the “Preferred Stock”), which shares are to be convertible into shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), and associated stock purchase rights (the “Rights”) to be issued pursuant to the First Amended and Restated Rights Agreement, dated as of September 10, 2007 (the “Rights Agreement”), between the Company and Computershare Trust Company, N.A. (the “Rights Agent”).
The Preferred Stock, the Common Stock, and the associated Rights are herein referred to as “Securities.” The Preferred Stock may be sold as set forth in the prospectus which forms a part of the Registration Statement, and as to be set forth in one or more supplements to the prospectus. This opinion letter is furnished to you at your request to enable you to fulfill the requirements of Item 601(b)(5) of Regulation S-K, 17 C.F.R. § 229.601(b)(5), in connection with the Registration Statement.
For purposes of this opinion letter, we have examined copies of the following documents:
  1.   An executed copy of the Registration Statement.
  2.   The Restated Certificate of Incorporation of the Company, as certified by the Secretary of State of the State of Delaware on November 1, 2007 and by the Secretary of the Company on the date hereof as being complete, accurate, and in effect (the “Certificate of Incorporation”).
  3.   The Amended and Restated Bylaws of the Company, as amended, as certified by the Secretary of the Company on the date hereof as being complete, accurate, and in effect (the “Bylaws”).
  4.   An executed copy of the Rights Agreement.

 

 

November 5, 2007
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  5.   Resolutions of the Board of Directors of the Company adopted at a meeting held on October 30, 2007, as certified by the Secretary of the Company on the date hereof as being complete, accurate, and in effect, relating to the filing of the Registration Statement and related matters (the “Securities Resolutions”).
In our examination of the aforesaid documents, we have assumed the genuineness of all signatures, the legal capacity of all natural persons, the accuracy and completeness of all documents submitted to us, the authenticity of all original documents, and the conformity to authentic original documents of all documents submitted to us as copies (including telecopies).
For purposes of this opinion letter, we have also assumed that (i) the issuance, sale, amount and terms of any Securities of the Company to be offered will have been duly authorized and established by proper action of the board of directors of the Company or a duly authorized committee of such board (“Board Action”) consistent with the procedures and terms described in the Registration Statement and in accordance with the Securities Resolutions, the Certificate of Incorporation, the Bylaws and applicable Delaware corporate law, in a manner that does not violate any law, government or court-imposed order or restriction or agreement or instrument then binding on the Company or otherwise impair the legal or binding nature of the obligations represented by the applicable Securities; (ii) at the time of offer, issuance and sale of any Securities, no stop order suspending the effectiveness of the Registration Statement will have been issued and remain in effect; (iii) prior to any issuance of the Preferred Stock, appropriate certificates of designation will be accepted for record by the Secretary of State of the State of Delaware; (iv) prior to the issuance of any Common Stock upon conversion of or as a dividend on any Preferred Stock, sufficient shares of Common Stock shall be duly authorized pursuant to the Certificate of Incorporation; (v) the Preferred Stock will be delivered against payment of valid consideration therefor and in accordance with the terms of the applicable Board Action authorizing such sale and any applicable underwriting agreement or purchase agreement and as contemplated by the Registration Statement and/or the applicable prospectus supplement; (vi) the Company will remain a Delaware corporation; and (vii) any Rights associated with the Common Stock will be issued under the Rights Agreement.
To the extent that the obligations of the Company with respect to the Rights associated with Common Stock may be dependent upon such matters, we assume for purposes of this opinion that the Rights Agent under the Rights Agreement is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization; that the Rights Agent is duly qualified to engage in the activities contemplated by the Rights Agreement; that such Rights Agreement has been duly authorized, executed and delivered by the Rights Agent and constitutes the legal, valid and binding obligation of the Rights Agent enforceable against the Rights Agent in accordance with its terms; that the Rights Agent is in compliance with respect to performance of its obligations under the Rights Agreement, with all applicable laws and regulations; and that the Rights Agent has the requisite organizational and legal power and authority to perform its obligations under the Rights Agreement; and that members of the Board of Directors of the Company have acted in a manner consistent with their fiduciary duties as required under applicable law in adopting the Rights Agreement. In rendering this opinion, we have relied as to certain factual matters on information obtained from public officials and officers of the Company.
This opinion letter is given, and all statements herein are made, in the context of the foregoing.

 

 

November 5, 2007
Page 3
This opinion letter is based as to matters of law solely on the Delaware General Corporation Law, as amended. We express no opinion herein as to any other laws, statutes, ordinances, rules, or regulations (and in particular, we express no opinion as to any effect that such other laws, statutes, ordinances, rules, or regulations may have on the opinions expressed herein). As used herein, the term “Delaware General Corporation Law, as amended” includes the statutory provisions contained therein, all applicable provisions of the Delaware Constitution and reported judicial decisions interpreting these laws.
Based upon, subject to and limited by the foregoing, we are of the opinion that:
     (a) The Preferred Stock, upon due execution and delivery on behalf of the Company of certificates therefor, will be validly issued, fully paid and nonassessable.
     (b) With respect to any Common Stock and the associated Rights that may be issued upon the conversion of or as a dividend on the Preferred Stock, upon due exercise of applicable conversion rights in accordance with the terms of the Preferred Stock and upon due execution and delivery on behalf of the Company of certificates for the Common Stock, the Common Stock and the associated Rights will be validly issued, and the Common Stock will be fully paid and nonassessable.
It should be understood that the opinion above concerning the Rights does not address the determination a court of competent jurisdiction may make regarding whether the Board of Directors of the Company would be required to redeem or terminate, or take other action with respect to, the Rights at some future time based on the facts and circumstances existing at that time and that our opinion above addresses the Rights and the Rights Agreement in their entirety and not any particular provision of the Rights or the Rights Agreement and that it is not settled whether the invalidity of any particular provision of a rights agreement or of rights issued thereunder would result in invalidating in their entirety such rights.
This opinion letter has been prepared for your use in connection with the Registration Statement and speaks as of the date hereof. We assume no obligation to advise you of any changes in the foregoing subsequent to the delivery of this opinion letter.
We hereby consent to the filing of this opinion letter as Exhibit 5.1 to the Registration Statement and to the reference to this firm under the caption “Legal Matters” in the prospectus constituting a part of the Registration Statement. In giving this consent, we do not thereby admit that we are an “expert” within the meaning of the Securities Act of 1933, as amended.
Very truly yours,
/s/ HOGAN & HARTSON L.L.P.
HOGAN & HARTSON L.L.P.