Acquisition of 3.0% Net Smelter Return Royalty on Ruby Hill MineIn May, Royal Gold acquired a 3.0% net smelter return royalty on the Ruby Hill gold mine from International Minerals for $38 million. Ruby Hill is a producing mine located in Nevada and operated by Barrick Gold Corporation. Barrick reported proven and probable reserves, as of December 31, 2011, of 16.8 million tons of ore, at an average grade of 0.058 ounces per ton, containing approximately 978,000 ounces of gold. In addition to reserves, Barrick estimates additional mineralization 2 of 107.6 million tons, at a grade of 0.021 ounces per ton. Expansion and Extension of Revolving Credit Facility In May, Royal Gold amended and restated its revolving credit facility (the “Revolver”) to provide maximum availability of $350 million, and to extend the maturity date to May 30, 2017. Key modifications to the Revolver included: 1) an increase in the maximum principal balance from $225 million to $350 million; 2) the addition of an accordion feature permitting Royal Gold to increase the availability under the Revolver at any time by up to an aggregate of $50 million, with no amendments or additional fees, upon the satisfaction of certain conditions including obtaining commitments from the banks to participate; and 3) an extension of the final maturity date from February 2014 to May 30, 2017. There are no changes to the commitment fee of 0.50% or the current interest rate on the Revolver of LIBOR plus 1.875%. Convertible Senior Notes Offering and Repayment of Term Loan In June, Royal Gold completed an offering of $370 million of 2.875% convertible senior notes due 2019. Net proceeds from the offering were approximately $359 million, after deducting underwriting discounts, commissions and offering expenses. The Company used a portion of the proceeds to repay the outstanding balance of $110.6 million of its term loan facility, with the remaining proceeds reserved for general corporate purposes, including future acquisitions of royalty interests.