The Prestea and Bogoso properties comprise a collection of adjoining mining concessions that together cover an 85 kilometer section of the Ashanti gold trend district in the central-eastern section of the Western Region of Ghana. Historical mining activity has occurred from underground and open pit operations feeding both refractory and non-refractory processing plants. Future Global Resources Ltd. (FGR) owns a 90% interest in Prestea and Bogoso, and the Government of Ghana owns the remaining 10%.
Currently, ore from the Prestea mine is processed at the Prestea and Bogoso plant. Operations at the Prestea mine are primarily underground using mechanized shrinkage mining and longhole open-stoping, with some open pit mining as resources are identified and permitted. Ore is processed via a 1.5 million tonne per annum carbon-in-leach (CIL) processing plant.
In May 2015, Royal Gold’s wholly-owned subsidiary, RGLD Gold AG, acquired a gold stream from a wholly-owned subsidiary of Golden Star Resources Ltd. (Golden Star), which included production from Golden Star’s Wassa, Prestea and Bogoso mines. Effective September 30, 2020, upon the sale of the Prestea and Bogoso mines by Golden Star to Future Global Resources Ltd. (FGR), the stream agreement between RGLD Gold AG and Golden Star was separated to provide for a separate stream agreement between RGLD Gold AG and FGR for the Prestea and Bogoso mines.
Under the Prestea and Bogoso stream agreement, RGLD Gold AG has the right to purchase 5.5% of the gold produced from FGR’s Prestea and Bogoso mines. The cash purchase price for gold is 30% of the spot price of gold per ounce delivered. Payable gold is calculated as 99.5% of contained gold in doré or 99.0% in any other form.
*Detailed information on our interest can be found on the Portfolio Asset Summary table