International Royalty Corporation increases gold royalty assets



    AMEX:  ROY
    TSX:IRC

    DENVER, CO, Dec. 17 /CNW Telbec/ - International Royalty Corporation
(AMEX:   ROY, TSX: IRC) (the "Company") ("IRC") is pleased to update investors
on recent expansions of its gold royalty portfolio. This growth has been
achieved both through additional acquisitions and through additional advances
and technical work on royalty-bearing projects by the operators.
    On December 13, 2007 IRC purchased four royalties from Goldcorp Inc.
("Goldcorp") for an acquisition cost of US$4.0 million. These four royalties
include:

    
    - An effective 0.28% to 2.79% NSR royalty on the Pinson gold project
      ("Pinson"). Barrick Gold Corporation is currently completing
      feasibility studies on the Pinson project at a cost of
      US$30 million(1), to be completed by April, 2009.
    - A 0.63% NSR(2) royalty that covers approximately 10% of the Gold Hill
      Deposit. This Barrick Gold / Kinross Gold project is in pre-development
      with mine and construction planning to attain production in 2009 or
      2010.
    - A 4.00% NSR royalty on Radius Gold's Tambor gold property in Guatemala
    - A 0.526% working interest in one well and a 2.612% working interest in
      two oil wells, located in Sheridan County, Montana

    The Pinson royalty further increases IRC's holdings in the Pinson district
of Nevada. Over the past three years, IRC has made two purchases on the Pinson
trend and established itself as the largest owner of Pinson royalty interests,
covering approximately 80% of the known high-grade gold Resources(3) (Measured
and Indicated Resources of 2.23 million tonnes grading 14.4 g/t gold for
1,060,000 ounces plus Inferred Resources of 3.1 million tonnes grading 11.7
g/t gold) located on fee lands not subject to the proposed changes in the
Federal Mining Law. With the addition of the Goldcorp Pinson royalty, IRC's
interests on the known Pinson resources provide the Company with a higher
total royalty rate(4) (4.23%) and additional exposure to 14 square miles of
regional exploration potential in the Pinson district.
    The newly acquired royalty on the Gold Hill project expands the Company's
position to a 0.90% NSR. This project is at the feasibility-stage and
represents an extension of the large Round Mountain gold mine in Nevada. Joint
operators Kinross Gold and Barrick Gold are completing feasibility studies on
this project.
    In addition to these acquisitions IRC has seen strong internal growth from
its gold royalty portfolio during the year. Highlights from the portfolio are
detailed below.
    On September 21, 2007(5), St Barbara Limited ("St Barbara") announced
their objectives for the next 12 months. These include:

    - Production of 175,000 ounces of gold per year at the Southern Cross
      mine
    - Commencement of gold production at the Gwalia Deeps project by
      September of 2008
    - Establishment of reserves and commencement of mining at the Tower Hill
      deposit
    - Expansion of open pit reserves at the Southern Cross mine.

    On August 9, 2007(6), Mercator Gold PLC ("Mercator") announced(6) that
production had commenced on its Meekatharra gold project, also located in
Western Australia. Commissioning of the Bluebird Mill began during the second
week of July and acheived full production by the end of September 2007. In its
first full year of operation, commencing October 1, 2007, Mercator expects to
produce 120,000 ounces of gold at its Meekatharra mine.
    IRC owns a 1.5% NSR royalty on the Southern Cross, Meekatharra, Gwalia
Deeps and Tower Hill projects. IRC purchased this royalty for US$10.2 million.
At US$700 per ounce gold, IRC expects to receive US$3.7 million in revenue
annually from these projects.(7)
    Goldbelt Resources Ltd ("Goldbelt") is being acquired by Wega Mining ASA
for CA$114 million(8). Goldbelt's principal asset is the Inata gold deposit on
its Belahouro project, located in Burkina Faso. IRC acquired this royalty in
February 2005 for US$817,000. In October 2007, Goldbelt announced Proven and
Probable Reserves of 15.4 million tonnes grading 1.9 g/t gold for
944,000 ounces, using a 0.8 g/t gold cutoff.(9)
    IRC holds a sliding-scale NSR royalty on the Chilean side of Pascua Lama
gold project. At a gold price of US$700 per ounce, this royalty is expected to
pay in excess of US$13 million per year to IRC. The mine has a projected life
of more than 20 years. According to the most recent timeline published by the
project's operator, Barrick Gold Corporation, production is expected to begin
in 2010(10). The operator continues to advance its negotiations with the
Argentine government on fiscal matters. Completion of these negotiations is
expected to trigger the commencement of a three-year project construction
schedule.
    New production and expansion of output at existing mines, as well as
growth in Reserves and Resources, illustrate the benefit of purchasing royalty
portfolios which include both production and upside potential from earlier
stage, pre-production projects. This growth is completely organic to IRC and
does not require any additional capital investment or shareholder dilution on
the part of the Company.
    This press release has been reviewed by Nick Michael of SRK Consulting
(U.S.) Inc, a qualified person for the purposes of National Instrument 43-101.

    International Royalty Corporation
    ---------------------------------

    International Royalty Corporation (IRC) is a global mineral royalty
company. IRC holds over 70 royalties including an effective 2.7% NSR on the
Voisey's Bay mine, a sliding-scale NSR on the Pascua gold project, and a 1.5%
NSR on more than 3.0 million acres of gold lands in Western Australia. IRC is
senior listed on the Toronto Stock Exchange (TSX:IRC) as well as the American
Stock Exchange (AMEX:   ROY).

    On behalf of the Board of Directors,
    INTERNATIONAL ROYALTY CORPORATION

    Douglas B. Silver
    Chairman and CEO

    References

    1  Atna Resources press release, September 18, 2007
    2  Different rates apply if gold prices are above or below US$400 per
       ounce
    3  Atna Resources press release, September 18, 2007
    4  On the unpatented claims the royalty rate is calculated as 6.0% less
       other existing royalties less any Federal imposed royalties.
    5  St Barbara Limited North American roadshow presentation, September 21,
       2007, http://www.stbarbara.com.au/upfile/070921NthAmericanPrez.pdf
    6  Mercator Gold PLC press release, August 9, 2007
    7  2007-2010 average revenue per year
    8  Goldbelt Press Release 10/18/2007
    9  Goldbelt Press Release 10/16/2007
    10 Barrick Gold Corporation Website, http://www.barrick.com/
    

    Cautionary Statement Regarding Forward-Looking Statements
    ---------------------------------------------------------

    Some of the statements contained in this release are forward-looking
statements, such as statements that describe IRC's estimated revenues
including but not limited to IRC's royalty interests in the Pinson, Gold Hill,
Tambor and Sheridan County oil well projects and proposed acquisition of said
royalty interests, estimated royalty revenues from these royalty interests,
estimated production from these royalty intersts, and estimated mine life,
costs and projected capital costs at these projects. Since forward-looking
statements are not statements of historical fact and address future events,
conditions and expectations, forward-looking statements by their nature
inherently involve unknown risks, uncertainties, assumptions and other factors
well beyond IRC's ability to control or predict. Actual results and
developments may differ materially from those contemplated by such
forward-looking statements. Material factors that could cause actual revenues
to differ materially from those contained in such forwarding-looking
statements include fluctuations in gold and oil prices; timing of production;
accuracy of the operators' projections and production capacities; the effects
of weather, operating hazards, adverse geological conditions and availablility
of labor, materials and equipment; changes in governmental laws, regulations,
economic conditions or shifts in political attitudes or stability. These
forward-looking statements should not be relied upon as representing IRC's
views as of any date subsequent to the date of this release. There can be no
assurance that forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those anticipated in
such statements. IRC has relied on published data from the project operators,
which it cannot independently verify. Accordingly, readers should not place
undue reliance on any forward-looking statements.




For further information:

For further information: Jack Perkins, Investor Relations, (303)
991-9500; Douglas B. Silver, Chairman and CEO, (303) 799-9020,
info@internationalroyalty.com, www.internationalroyalty.com; Renmark Financial
Communications Inc.: Tina Cameron: tcameron@renmarkfinancial.com; Melanie
Lecavalier: mlecavalier@renmarkfinancial.com, (514) 939-3989, Fax: (514)
939-3717, www.renmarkfinancial.com

Organization Profile

INTERNATIONAL ROYALTY CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890