TORONTO (miningweekly.com) – Denver-based resources royalty firm Royal Gold has obtained a $100-million secured term loan, the company announced on Thursday.

The loan was arranged by HSBC, and will be funded in conjunction with the closing of the plan of arrangement between Royal Gold and acquisition target International Royalty Corporation.

Royal Gold agreed last year to buy IRC for either C$7,451 in cash or 0,1385 in shares, in a friendly transaction that has the support of IRC's board.

The company announced its offer after Toronto-based rival Franco-Nevada proposed to pay C$6.75 a share in cash for IRC, which owns 84 royalties, including a net smelter return royalty on Vale Inco's Voisey's Bay nickel mine, in Canada, and a sliding scale royalty on the Chilean portion of Barrick Gold's massive Pascua Lama project.

The loan will mature 18 months from the funding date with principal repayments scheduled to occur every three months.

The interest rate on the loan is the London interbank offered rate plus 2,25%.

Funding under the $100-million term loan is subject only to delivery of a borrowing notice and certificates by Royal Gold and certain of its subsidiaries.

Royal Gold owns royalties on 118 properties on six continents, including royalties on 21 producing mines and 12 development stage projects.

Earlier this week, Franco-Nevada said it was extending its all-cash offer of $6,75 per share for IRC.

IRC shareholders are scheduled to vote on the Royal Gold deal in mid-February.

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