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Royal Gold Announces Restructuring of Hod Maden Project Interests

RGLD
  • Royal Gold reduced its direct equity ownership in Artmin Madençilik from 30% to 15% as part of a restructuring of the Hod Maden Project joint venture.
  • Royal Gold received a new 2.5% net smelter return (NSR) royalty interest on the project, termed the New RG Royalty.
  • SSR Mining sold all its Artmin interests to Lidya Madençilik & resigned as operator, with Lidya assuming operatorship of the project.
  • SSR received a new 4.0% NSR royalty interest on the project in exchange for its exit from the joint venture.
  • Lidya will assume the full economic burden of both the New RG Royalty & the SSR Royalty without reducing Royal Gold's exposure to its remaining equity.
  • Post-restructuring, Artmin will be owned 15% by Royal Gold & 85% by Lidya.
  • Royal Gold retains a perpetual right of first refusal on the SSR Royalty & SSR cannot sell the royalty without consent before January 1, 2028.
  • Royal Gold has an option to acquire half of the SSR Royalty (2.0% NSR) for $160 million from closing through 12 months after commercial production.
  • Royal Gold will fund the next $70 million of project costs, followed by $397 million from Lidya, with future funding split pro rata based on 15%/85% ownership.
  • Closing is subject to Turkish regulatory approval & is expected in the second half of 2026.
  • The restructuring preserves the value of Royal Gold's interest & is expected to maintain its overall portfolio exposure at approximately 4%.
  • Royal Gold expects to receive approximately 9,000 gold equivalent ounces (GEOs) per year from the combined royalties during the first five years of production.
  • The Hod Maden Project is a high-grade underground gold-copper development in northeastern Türkiye with an estimated 13-year mine life & $910 million remaining development capital cost.
  • Lidya is the mining arm of Çalık Holding & previously operated the Gediktepe mine before its sale to ACG Metals in 2024.
  • GAP İnşaat, a Çalık Holding subsidiary, is carrying out development & infrastructure works at the Hod Maden Project.
  • Total private royalty burden on the project will increase to 8.5% following the transaction.