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ROYAL GOLD ANNOUNCES SALE OF ITS INTEREST IN THE CRESCENT VALLEY GOLD PROJECT AND COMPLETION OF A FINANCING

 ROYAL GOLD ANNOUNCES SALE OF ITS INTEREST
 IN THE CRESCENT VALLEY GOLD PROJECT AND COMPLETION OF A FINANCING
 DENVER, Dec. 30 /PRNewswire/ -- Royal Gold Inc. (NASDAQ: RGLD) today announced that it has sold its royalty interests in the Crescent Valley gold project and warrants for two million shares of Common Stock in a $400,000 private placement. In the private placement, Royal Gold sold interests in a limited partnership that will hold the Crescent Valley royalty interests and five year warrants to purchase Common Stock exercisable at $.0625, the current market price of the Common Stock. Denver Mining Finance Co. ("DMFC"), a wholly-owned subsidiary of Royal Gold, will be the General Partner of the partnership and will receive a 2 percent interest in the partnership and a modes management fee.
 The royalty interests sold include all of Royal Gold's 1.5 percent net smelter return royalty and a 1.25 net proceeds royalty interest in production by the Cortez Joint Venture from property consisting of mining claims covering approximately 4,000 acres immediately adjacent to the Cortez Joint Venture's Gold Acres Mine and its new Pipeline discovery in the Crescent Valley, south of Elko in Lander County, Nevada. Royal Gold announced its GAS-1 gold discovery on this property on Oct. 28, 1988, and further described the restructuring of its interest into the royalty now being sold in a press release on Aug. 15, 1991. Copies of these earlier releases may be obtained from Royal Gold.
 Purchasers of the private placement included officers and directors of Royal Gold. Royal Gold sold the royalty interests and warrants in order to raise cash to continue operations, and organized the private placement when offers from third parties were inadequate.
 Stanley Dempsey, chairman and chief executive officer of Royal Gold, said "the funds received from the financing will restore the company's liquidity," but he noted that "the long-term viability of Royal Gold depends upon the company securing a steady source of cash flow." Dempsey further stated that "we are optimistic about exploration by major firms on our gold properties, but our short term objective is to build the earnings of our financial and environmental services firms, Denver Mining Finance and Environmental Strategies Inc.
 Royal Gold is a Denver-based, publicly held corporation engaged in the production of gold and other precious metals primarily through joint ownership arrangements, and the acquisition, exploration, development, and sale of gold properties. Royal has one gold project in California being explored by Battle Mountain Exploration, one in Nevada being explored by Newmont Exploration, and one in Arizona, where efforts to sell or farm-out continue. Royal Gold is traded on NASDAQ under the symbol RGLD.
 -0- 12/30/91
 /CONTACT: Stanley Dempsey of Royal Gold, 303-573-1660/
 (RGLD) CO: Royal Gold Inc.; Denver Mining Finance Co. ST: Colorado IN: MNG SU:


MC -- DV006 -- 5699 12/30/91 15:15 EST
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Publication:PR Newswire
Date:Dec 30, 1991
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