SUBSEQUENT EVENT

12 Months Ended

Jun. 30, 2012

SUBSEQUENT EVENT

SUBSEQUENT EVENT

20. SUBSEQUENT EVENT

Mt. Milligan III Gold Stream Acquisition

        On August 8, 2012, Royal Gold and one of its wholly owned subsidiaries entered into a First Amendment to Milligan II Agreement (the "Milligan III Agreement") with Thompson Creek and one of its wholly-owned subsidiaries, whereby, subject to certain closing conditions set forth in the Milligan III Agreement, Royal Gold agreed to purchase an additional 12.25% of the payable gold from the Mt. Milligan copper-gold project, in exchange for a total of $200 million, $75 million of which would be paid shortly after the effectiveness of the Milligan III Agreement, and, when production is reached, cash payments for each payable ounce of gold delivered to Royal Gold, as discussed further below.

        Upon effectiveness of the Milligan III Agreement, Royal Gold will increase its aggregate investment from $581.5 million to $781.5 million, and will be entitled to purchase a total of 52.25% of the payable ounces of gold produced from the Mt. Milligan project at a cash purchase price equal to the lesser of $435, with no inflation adjustment, or the prevailing market price for each payable ounce of gold (regardless of the number of payable ounces delivered to Royal Gold). Shortly upon effectiveness of the Milligan III Agreement, Royal Gold will have a remaining commitment of $251.9 million to Thompson Creek.