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(RTTNews) - Royal Gold, Inc. (RGLD) announced on Wednesday that its subsidiary, RGLD Gold AG, has executed an additional deal with Centerra Gold Inc. (CGAU) and its unit Thompson Creek Metals Company Inc., to extend the mine life of Mount Milligan to 2035, and the potential for a future increase in mine life beyond 2035.

The Mount Milligan Mine, owned by Centerra Gold, provides near-term cash and gold consideration to Royal Gold in return for long-term cost support.

Bill Heissenbuttel CEO of Royal Gold, said: "Mount Milligan is a large and potentially long-life operation, and our support is designed to allow Centerra to extend the mine life and add long-term value for each company's stakeholders."

With this, Royal Gold will receive around $125 million in near-term consideration, comprised of $24.5 million of cash and 50,000 ounces of gold, and a long-term free cash flow interest on the Mount Milligan Mine.

Royal Gold will provide cost support payments for metal deliveries starting in approximately 2030 that provide a basis for an immediate reserve increase and extension of the Mount Milligan mine life to 2035.

Centerra expects to complete a preliminary economic assessment in the first half of 2025 to evaluate a mine life extension beyond 2035.

Royal Gold already holds a stream interest at the Mount Milligan Mine comprising a gold stream that provides for delivery of 35 percent of the payable gold in return for a cash payment of $435 per ounce, and a copper stream that provides for delivery of 18.75 percent of the payable copper in return for a cash payment of 15 percent of the spot copper price.

This existing stream deal will remain unaffected by additional agreements.

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