International Royalty restructures holding of certain royalties for enhanced cash flow


    DENVER, CO, April 9 /CNW Telbec/ - International Royalty Corporation
(TSX: IRC, NYSE-A: ROY) ("IRC" or the "Company") announced today that it had
completed a restructuring of the holding of certain royalties which will
improve cash flow by allowing the offset of available resource and other
deductions against royalty income.
    On April 9, 2009 IRC, through its wholly owned subsidiary Voisey's Bay
Holding Corporation, completed an investment of US$160 million to acquire all
of the common shares of McWatters Mining Inc. ("McWatters") representing a 45%
voting interest. Specifically, pursuant to the terms of the Plan of
Arrangement of McWatters which was effective on June 2, 2008, these common
shares are entitled to 45% of the votes of all McWatters voting shares
outstanding and currently one of the three directors of McWatters is an
officer of IRC. A class of voting preferred shares created under that Plan of
Arrangement and issued to all former common shareholders of McWatters is
entitled to 55% of the votes and an aggregate of CDN$1.0 million of cumulative
dividends and redemption amounts over a five-year period. All income in excess
of CDN$1.0 million will accrue to the common shares, all of which are owned by
IRC. The funds were raised by McWatters to allow it to acquire income
producing assets.
    Also on April 9, 2009 McWatters completed a US$160 million loan to
Canadian Minerals Partnership ("CMP"), a partnership wholly owned by IRC. This
loan has a five-year term, is unsecured and bears interest at an annual rate
of 11%. The proceeds of this loan have been used by CMP to acquire certain
royalty interests from IRC including the Pascua, Las Cruces, Avebury,
Wolverine and Horizon royalties, as well as preferred shares in Archean
Resources Ltd., another company wholly owned by IRC. On July 31, 2008, CMP had
acquired from an IRC subsidiary an 89.99% interest in the Labrador Nickel
Royalty Limited Partnership, the entity owning the 3% NSR on the Voisey's Bay
nickel-copper-cobalt operation. The result of the transaction is intended to
result in a more tax-effective ownership structure which places the assets and
resulting resource and other deductions in the entity earning the income
derived from the Voisey's Bay royalty.
    McWatters was reorganized effective on June 2, 2008, and pursuant to a
proposal with its creditors, substantially all of its unsecured creditor
claims were acquired by CFT Capital Inc. ("CFT"), and the balance of such
claims have been settled. As a condition of the purchase of McWatters shares,
a portion of the liability to CFT was forgiven and the remaining CDN$7.3
million will be payable out of 6% of available cash flow of McWatters.
McWatters has no other liabilities and has approximately CDN$120 million of
available resource deductions and tax-loss carryforwards. As of December 31,
2008, IRC had advanced US$2.2 million to CFT to fund a portion of the cost of
the reorganization of McWatters. This amount is repayable by CFT to IRC from
cash flow over five years.
    For financial statement purposes, IRC believes that it is required to
consolidate the balance sheet and results of operations of McWatters in its
Financial Statements.

    International Royalty Corporation

    International Royalty Corporation (IRC) is a global mineral-royalty
company. IRC holds more than 85 royalties including an effective 2.7% NSR on
the Voisey's Bay mine, a sliding-scale NSR on the Pascua-Lama gold project in
Chile, a 1.5% NSR on the Las Cruces copper project in Spain and a 1.5% NSR on
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 NYSE Amex
    Further information required by securities legislation with respect to
the acquisition of McWatters shares is available in an early warning report
dated April 9, 2009 filed by Voisey's Bay Holding Corporation on SEDAR. A copy
of the early warning report may also be obtained by contacting Douglas B.
Silver at the telephone number noted below.

    On behalf of the Board of Directors,

    Douglas B. Silver
    Chairman and CEO

    Forward Looking Statements

    Some of the statements contained in this press release are
forward-looking statements, such as statements that describe IRC's future
plans, intentions, objectives or goals, and specifically include, but are not
limited to, the potential to offset resource and other deductions against
royalty income, the expected tax efficiency of the ownership structure, the
repayment of the debt owing to CFT Capital Inc., the consolidation of
McWatters balance sheet and operations in the Company's financial statements
and other such statements. Since forward-looking statements are not statements
of historical fact and address future events, conditions and expectations,
forward-looking statements inherently involve unknown risks, uncertainties,
assumptions and other factors well beyond the Company's ability to control or
predict. Actual results and developments may differ materially from those
contemplated by such forward-looking statements depending on, among others,
such key factors as the actual tax efficiency achieved through the ownership
structure, potential changes in tax laws and regulations, accounting
requirements and treatment, level of royalty revenues and cash flow of
McWatters. IRC's forward-looking statements in this press release regarding
tax treatment, deductions accounting, available cash flow, liabilities and tax
efficiencies is based on certain assumptions and interpretations. The
forward-looking statements included in this document represent IRC's views as
of the date of this document and subsequent events and developments may cause
IRC's views to change. These forward-looking statements should not be relied
upon as representing IRC's views as of any date subsequent to the date of this
document. 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 not to be as anticipated, estimated or intended.
Accordingly, readers should not place undue reliance on any forward-looking

For further information:

For further information: Jack Perkins, Director of Investor Relations,
(303) 991-9500; Douglas B. Silver, Chairman and CEO, (303) 799-9020,;; Renmark Financial
Communications Inc.: Barbara Komorowski,;
Christine Stewart,; Montreal: (514) 939-3989,
Fax: (514) 939-3717; Toronto: (416) 644-2020, Fax: (416) 644-2021;

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