DENVER, CO, Sept. 4 /CNW Telbec/ - International Royalty Corporation
(AMEX: ROY, TSX: IRC) (the "Company" or "IRC") is pleased to announce that it
has acquired four mineral royalties from Atna Resources Ltd. ("Atna") for
US $20 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
this royalty once the project is commissioned.
Wolverine is owned by Yukon Zinc Corp. ("Yukon Zinc") which was recently
acquired by two Chinese firms, Jinduicheng Molybdenum Group, Ltd.
("Jinduicheng") and Northwest Nonferrous International Investment Company,
Ltd. Jinduicheng is one of the two largest molybdenum producers in China(1).
According to a Technical Report(2) prepared by Wardrop Engineering Inc.
on October 22, 2007, life-of-mine operating costs at the Wolverine mine are
expected to be US$0.265 per pound of zinc after deducting by-product revenue
on the basis of average metal prices over the preceding two years.
The Wolverine deposit contains Proven and Probable Reserves of
5.15 million tonnes grading 9.7% zinc, 282 grams per tonne of silver
(46.7 million contained ounces), 0.9% copper, 1.4 grams per tonne of gold
(225,000 contained ounces), and 1.3% lead. Projected mine life based on
reported Reserves is eight years. There is an additional Inferred Resource of
1.7 million tonnes grading 12.2% zinc, 385 grams per tonne of silver,
1.2% copper, 1.7 grams per tonne gold, and 1.7% lead.(3)
The other acquired royalties include:
1. 3% NSR royalty on the feasibility-stage McDonald-Keep Cool epithermal
gold deposits in Montana, United States. This project is operated by
Newmont Mining Corp. The royalty applies to the exploration lands
surrounding the current McDonald deposit as well as approximately
2/3 of the entire Keep Cool deposit.
2. A 0.4% NSR royalty on the exploration-stage Minera Hispaniola copper
and gold project in the Dominican Republic. This project is operated
by Energold Mining Limited and GoldQuest Mining Corp.
3. A 2.5% NSR royalty on the exploration-stage Mina Cancha precious
metals epithermal project in Argentina. The project operator, Yamana
Gold Inc., holds a first right of refusal on this royalty.
This press release has been reviewed by Martin Raffield of SRK Consulting
(U.S.) Inc, a qualified person for the purposes of National Instrument 43-101.
Notice of Webcast and Conference Call:
The Company will host this webcast and conference call on Friday,
September 5, 2008 at 11:00 AM (EDT) / 9:00 AM (MDT) to discuss these
To participate via webcast, go to:
To participate in the conference call, please dial (416) 644-3422 or
North American toll free (800) 594-3790, at least five minutes prior to the
scheduled start of the call.
A replay of the conference call will be available as of 1:00 PM (EDT) /
11:00 AM (MDT) September 5, 2008 to September 12, 2008. Please dial
(877) 289-8525 and enter the following access code 21282013#.
A copy of the presentation will be available for download on the
Company's website at www.internationalroyalty.com.
2. Wardrop Amended Technical Report on the Wolverine Property-Finlayson
District, Yukon, October 22, 2007
3. Yukon Zinc Corporation press release January 22, 2007
International Royalty Corporation
International Royalty Corporation (IRC) is a global mineral royalty
company. IRC holds 84 royalties including an effective 2.7% NSR on the
Voisey's Bay mine, a sliding-scale NSR on the Pascua gold project in Chile, a
1.5% NSR on the Las Cruces copper project in Spain and a 1.5% NSR
approximately 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
Cautionary Statement Regarding Forward-Looking Statements
Some of the statements contained in this release are forward-looking
statements and assume that the acquisition of the royalty interests from Atna
will be completed, such as statements that describe IRC's planned acquisition
of royalty interests in the Wolverine, McDonald-Keep Cool, Minera Hispaniola
and Mina Cancha projects, reported state of development in such projects; and
estimated mine life, costs and projected capital costs at these projects;
mineralization and reported Proven and Probable Reserves and Inferred
Resources on the Wolverine project; and projected benefits and timing of
acquisitions. Information related to the projects; estimated reserves,
resources and mineralization; timing of development, construction and costs;
and projected production and revenues is derived from information provided to
IRC by Atna Resources Ltd. and/or the operators and may constitute
forward-looking statements. 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 forward-looking statements include non-completion of
the acquisition of the royalties from Atna Resources Ltd., fluctuations in
mineral commodity prices; timing of production; accuracy of the operators'
projections and production capacities; the effects of weather, operating
hazards, adverse geological conditions and availability 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. IRC has relied on published data
from Atna Resources Ltd. and public records, which it cannot independently
verify. Accordingly, readers should not place undue reliance on any
For further information:
For further information: Jack Perkins, Director of Investor Relations,
(303) 991-9500; Douglas B. Silver, Chairman and CEO, (303) 799-9020,
firstname.lastname@example.org, www.internationalroyalty.com; Renmark Financial
Communications Inc.: Barbara Komorowski, email@example.com; Jen
Power, firstname.lastname@example.org, (514) 939-3989, Fax: (514) 939-3717,