International Royalty announces re-structuring of its interest in the Legacy Sand Project

    AMEX:  ROY
    TSX: IRC

    DENVER, CO, Dec. 24 /CNW Telbec/ - International Royalty Corporation
(AMEX:   ROY; TSX: IRC) (the "Company" or "IRC") announced today that
re-structuring of ownership in the Legacy Sand Project ("Legacy") in Nance
County, Nebraska, has been completed. This development-stage "frac sand"
project, on which IRC acquired a production payment-styled royalty in February
2007 for US$12.0 million, began production in the 2nd quarter of the year, but
has experienced problems in reaching targeted output levels. Reasons for the
delay center on unforeseen technical issues related to the plant design and
equipment. Resolution of these technical issues has been stalled by on-going
disputes between the former owners of Legacy. In the meantime, there has been
high demand for the limited production from the facility, and all product has
been sold.
    To resolve the dispute, the partners have sold all of their interests in
Legacy to a privately-held purchaser (the "Buyer"). Under the terms of the
sale, the Buyer will become the Manager of a new limited liability company,
Preferred Rocks of Genoa Holding Company, LLC ("Genoa"), formed to finance,
own and operate the Legacy project. A detailed plan has been formed to address
existing technical issues and at the same time double the Legacy plant
production capacity to 1,000,000 short tons per year of frac sand and other
    To enable the sale and new investment, IRC has restructured its interest
in Legacy, originally a fixed royalty of $4.75 per ton on the first
500,000 tons produced annually for a period of 12 years and a 2% gross royalty
thereafter, as well as a security interest in the sand lease. Accordingly, IRC
and the Buyer have completed the following restructuring of its interest in

    - IRC received the following:

           - US$6.0 million in cash,

           - a membership interest in Genoa paying a 10% preferred return on
             a deemed US$8.0 million investment, including return of all
             capital before distribution of any cash to the Manager, and

           - a residual net profits interest of 5.25% in the restructured
             Legacy project.

    - Any cash received on the deemed investment will be paid only to the
      extent of excess available funds.

    - The Company will not be required to contribute any additional capital
      to Genoa, such as for construction cost overruns, and will experience
      no dilution of its net profits interest.

    Based on the construction, mining and marketing plans of the Buyer, the
restructured investment is expected to provide IRC with project returns in
excess of its original projections. Assuming these plans are successful, the
Company estimates that the return of its restructured investment will be
achieved within 2 to 5 years after full production is attained (projected for
end of 2008), based on 750,000 short tons per year of marketable output and a
weighted average product sales prices of US$65-US$75 per ton. After return of
capital, IRC's net profits interest would generate annual income in excess of
US$1.0 million per year.
    IRC concurs with the Buyer's new plan as the best means to address the
current issues while, more importantly, advancing the project to realization
of its full potential. IRC continues to believe in the high quality of the
Legacy resource, especially in light of the now demonstrated demand for its
sand product, and supports the proposed plan of the new operations management.

    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,

    Douglas B. Silver
    Chairman and CEO

    Cautionary Statement Regarding Forward-Looking Statements

    This release contains "forward-looking information" which may include,
but is not limited to, statements with respect to the Legacy Sand Project and
future plans, intentions, objectives or goals of the Genoa and its Manager;
anticipated resolution of the technical issues at the project; estimated
production from the project and success of the detailed plan; estimated future
revenues, costs and timing of production and revenues and future demand and
pricing for the frac sand resource. Forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of IRC and/or its royalty assets to be
materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such factors include,
among others, those factors discussed or referred to in the section entitled
"Risk Factors" in the annual information form of the Company filed in Canada
on SEDAR and in IRC's registration statement on Form 40-F filed with the
United States Securities and Exchange Commission. Although IRC has attempted
to identify important factors that could cause actual actions, events or
results to differ materially from those described in forward-looking
statements, there may be other factors that cause actions, events or results
to differ from those anticipated, estimated or intended. Forward-looking
statements contained or incorporated by reference herein are made as of the
date of this report and based on the opinions and estimates of management at
that time, and IRC disclaims any obligation to update any forward-looking
statements, whether as a result of new information, estimates or opinions,
future events or results or otherwise. 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. Accordingly, readers should not place undue reliance on
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,,; Renmark Financial
Communications Inc.: Tina Cameron:; Mélanie
Lecavalier:, (514) 939-3989, Fax: (514)

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