International Royalty enters agreement to acquire 16 royalties from Rio Tinto

    Las Cruces and Avebury Royalties will add to IRC Revenue in 2008

    DENVER, CO, Dec. 21 /CNW Telbec/ - International Royalty Corporation
(AMEX:   ROY, TSX: IRC) (the "Company") or ("IRC") is pleased to announce that
it has entered into a definitive purchase and sale agreement to acquire 16
mineral royalties from Rio Tinto PLC ("Rio Tinto"), including interests on the
near-producing Las Cruces copper and Avebury nickel mines, for US$61.5 million
in cash, plus a potential contingency payment. These acquisitions expand the
number of royalties in IRC's portfolio by approximately 20% to now include
more than 80 individual royalty interests.
    At current metal prices(1) it is expected that these royalties will
contribute US$3 million in gross revenue to IRC in 2008 (reflecting project
start-up phases for Las Cruces and Avebury) and more than US$10 million per
year once the mines achieve steady production rates. This would represent
approximately an 8% and a 25% increase in projected IRC revenues during 2008
and 2009, respectively.
    In addition to two royalties on the Las Cruces and Avebury projects (with
production expected during the fourth and first quarter of 2008, respectively)
the acquisitions would include three feasibility-stage and 11
exploration-stage royalties. Four of the these projects have disclosed
production plans with mine lives of ten years or more(2).
    This acquisition from Rio Tinto would enhance IRC's commodity exposure by
adding four gold, four diamond, two uranium, three copper and three nickel
royalties to IRC's portfolio. The interests also provide IRC with additional
exposure to zinc, lead, silver, cobalt, and molybdenum. Eight of the royalties
are located on properties in Canada, five are in Australia, two are in the
United States, and one is in Spain. The majority of the properties are
expected to have strong exploration potential on lands covered by the
royalties being purchased.
    IRC believes that the most significant royalty in the portfolio is a 1.5%
NSR on Inmet Mining Corporation's ("Inmet") Las Cruces copper project in
Spain. Inmet is currently constructing the mine with first cathode production
expected in the fourth quarter of 2008, with a projected annual average
production rate over 15 years of 142 million pounds of copper. Inmet reports
that the open-pit mine has Proven and Probable Reserves of 17.6 million tonnes
grading 6.2% copper (2.4 billion pounds)(3). They also report the possibility
of deeper primary sulphide resources.
    The second royalty of significant near-term importance to IRC is a 2.0%
NSR on the Avebury nickel project in Tasmania, Australia. This mine is
expected to be placed into production during the first quarter of 2008 by
Allegiance Mining NL(4). The underground mine will process high-grade sulphide
ores from Measured Resources of 0.46 million tonnes grading 1.15%, Indicated
Resources of 5.6 million tonnes grading 1.16% and Inferred Resouces of 5.8
million tonnes grading 1.05%, at a 0.7% nickel cutoff grade.(5)
    The commissioning of the Las Cruces and Avebury mines would, if the
acquisition is completed, expand IRC's portfolio to seven producing royalties.
The addition of three feasibility-stage royalties would bring the total number
of feasibility stage royalties in IRC's portfolio to 19.  In total, this
transaction, if completed, would increase the number of feasibility and later
stage royalties in IRC's porfolio to 31 royalties.
    This acquisition would increase IRC's uranium exposure through the
purchase of two uranium royalties. The first is a royalty on the Westmoreland
project in Queensland, Australia.  The operator of this project, Laramide
Resources, reports that the property currently contains 37.5 million pounds of
uranium (U(3)O8)(6).  The other uranium royalty applies to the Lazy Edward Bay
project, an exploration-stage project being managed by JNR Resources in the
Athabasca Basin of Saskatchewan.  This transaction, if completed, would
increase the number of uranium royalties owned by IRC to four.
    The four diamond royalties to be acquired would expand IRC's diamond
sector exposure to 20 royalties. Collectively, these new royalties contain 13
known kimberlite pipes and dikes that would bring IRC's total diamond royalty
exposure to 96 pipes and dikes.
    Collectively, this royalty portfolio applies to more than 1.2 million
acres upon which in excess of US$10 million is estimated to have been spent on
exploration during 2007.  As a royalty holder, IRC would not contribute to any
of these expenditures but would receive the benefit of any discoveries and
    Operators on two of the royalties (Bell Creek and Merlin) have first
rights of refusal which are currently under consideration.  The operator of
Avebury and Melba Flats asserts that it is entitled to a right of first
refusal on the royalties. IRC believes that this is not the case. 
Additionally, if the Las Cruces deposit is shown to contain a suspected deep
primary sulphide resource, IRC will make a contingency payment to Rio Tinto of
US$0.005 for each pound of identified recoverable copper in the sulphide
reserve at the commencement of production.
    This transaction is expected to close in two parts.  The non-Australian
royalties portion of the agreement is scheduled to close on December 21, 2007.
 The acquisition of the five Australian royalties (Avebury, Bell Creek, Melba
Flats, Merlin and Westmoreland) will close upon receiving approval from the
Australian Foreign Investment Review Board. This process typically takes less
than 30 days but could take up to 110 days.

    The royalties to be acquired are listed in the table below.

    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.

    IRC invites you to participate in its conference call to discuss these
proposed acquisitions. Due to the holiday season, a conference call and
webcast updating investors on both this and other recent events will be held
on Tuesday, January 8, 2008 at 10:30 AM EST.

    Notice of Conference Call and Webcast:

    To participate in the conference call, please dial 416-640-3404 or toll
free 1-866-322-1159. To ensure your participation, please call approximately
five minutes prior to the scheduled start of the call.

    To participate in the webcast, please login to,


    Asset           Royalty          Status        Commodity   Operator
    Avebury,                                                   Allegiance
    Australia       2.0% NSR         Development   Nickel      Mining
    Las Cruces,
    Spain           1.5% NSR         Development   Copper      Inmet Mining
    Bell Creek,
    Australia       A$1.00/$2.00/t   Feasibility   Nickel,     Metallica
                                                   Copper      Minerals
    High Lake,                                     Copper,     Zinifex
    Canada          1.5% NSR         Feasibility   Zinc,       Limited
    Westmoreland,                                              Laramide
    Australia       1.0% NSR         Feasibility   Uranium     Resources
    Afridi Lake                                                Shear
    East, Canada    1.5% NSR         Exploration   Diamonds    Minerals
    Berg, Canada    1.0% NSR         Exploration   Copper,     Terrane
                                                   Molybdenum  Metals Corp
    Burin-Stewart,                                             Cornerstone
    Canada          1.5% NSR         Exploration   Gold        Capital
    Hood River,                                                Tahera
    Canada          1.0% GOR         Exploration   Diamonds    Diamond
    Lazy Edward                                                JNR
    Bay, Canada     2.5% NSR         Exploration   Uranium     Resources
    Melba Flats,                                   Nickel,     Allegiance
    Australia       2.0% NSR         Exploration   Cobalt      Mining
    Merlin,                                                    North
    Australia       1.0% GOR         Exploration   Diamonds    Australian
    Monument,                                                  New Nadina
    Canada          1.0% NSR         Exploration   Diamonds    Explorations
    Scheelite                                                  Copper Ridge
    Dome, Canada    2.0% NSR         Exploration   Gold        Resources
    Uncle Sam,
    USA             2.0% NSR         Exploration   Gold        Geoinformatics
    Woodruff                                                   U.S. Gold
    Creek, USA      1.0% NSR         Exploration   Gold        Corporation

    1 Copper price of $3.00/lb, nickel price of $11.60/lb
    2 Allegiance Mining Quarterly Report, September 2007; Zinifex Limited
      website,, Las Cruces 43-101 report, Westmoreland 43-101
    3 Inmet Mining Corporation website,
    4 Allegiance Mining Limited website,
    5 Allegiance Mining Limited news release, April 13, 2007
    6 Laramide Resources website,  The royalty is capped at
      A$10 million but inflation-indexed.  Australian companies reports under
      JORC disclosures


    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

    Some of the statements contained in this release are forward-looking
statements and assume that the acquisition of the royalty interests from Rio
Tinto will be completed, such as statements that describe IRC's estimated
revenues including but not limited to IRC's royalty interests in the Avebury,
Las Cruces, Bell Creek, High Lake, Merlin, Westmoreland, Afridi Lake, Berg,
Burin-Stewart, Hood River, Lazy Edward Bay, Melba Flats, Monument, Scheelite
Dome, Uncle Sam and Woodruff Creek projects and proposed acquisition of said
royalty interests, estimated royalty revenues from these royalty interests,
estimated timing of production, estimated production from these royalty
interests,  and estimated mine life, costs and projected capital costs at
these projects; IRC's position as it relates to claims asserted by Avebury's
operator; and projected benefits and timing of acquisitions. Information
related to the projects; estimated reserve, resources and mineralization;
timing of development, construction and costs; and projected production and
revenues is derived from information provided to IRC by Rio Tinto 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 forwarding-looking
statements include the acquisition from Rio Tinto of their royalties has not
been completed, the Australian Foreign Investment Review Board may not approve
this acquisition, fluctuations in gold, copper, nickel, zinc, silver, diamond,
uranium, and molybdenum 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;;; Renmark Financial
Communications Inc.: Tina Cameron:; Melanie
LeCavalier:, (514) 939-3989, Fax : (514)

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