Exhibit 99.1
: On March 5, 2007, Royal Gold, Inc. entered into a Support and Option
Agreement ("IAMGOLD Support Agreement") with IAMGOLD Corporation ("IAMGOLD") in
connection with Royal Gold entering into a letter agreement proposing to acquire
100% of the equity of Battle Mountain Gold Exploration Corp. ("Battle Mountain")
accepted by Battle Mountain February 28, 2007 ("Acquisition Proposal"). Pursuant
to the IAMGOLD Support Agreement, IAMGOLD granted Royal Gold an irrevocable
option to purchase its beneficially owned Battle Mountain common stock, par
value $0.001 ("common stock") at an option price per share equal to the greater
of (i) 0.016925 shares of Royal Gold common stock, (ii) the per share
consideration offered pursuant to a superior proposal to acquire Battle Mountain
and (iii) the highest price paid by Royal Gold to any other shareholder of
Battle Mountain at any time during the ninety days prior to the date that the
shareholders of Battle Mountain approve the acquisition proposal. The common
stock subject to the IAMGOLD Support Agreement include shares of common stock
that may be acquired upon the conversion of a 6% convertible debenture of Battle
Mountain Gold (Canada) Inc., a subsidiary of Battle Mountain (the "Debenture").
The outstanding principal and interest under the Debenture is convertible into
Battle Mountain common stock at a conversion price of $0.50 per share, subject
to adjustment set forth in the Debenture. The IAMGOLD Support Agreement is
described in, and included as an exhibit to, the Schedule 13D filed by Xxxxx
Gold with the SEC on March 15, 2007.
On September 4, 2007, pursuant to Royal Gold's option under the IAMGOLD Support
Agreement, Royal Gold purchased 12,102,940 shares of common stock from IAMGOLD
and its subsidiary Repadre International Corporation ("Repadre") at an exercise
price of 0.0179 shares of Royal Gold common stock per share of common stock and
paid $2,242,082 in cash to IAMGOLD in connection with the purchase of the
Debenture. Royal Gold issued a total of 216,642 shares of its common stock to
IAMGOLD and Repadre.
On September 5, 2007, Royal Gold converted the Debenture for 4,086,794 shares of
common stock based on the outstanding principal and accrued interest as of
September 4, 2007.
