Royal Gold Inc. has agreed to pay Barrick Gold Corp. $610 million up front and additional payments over time for a share of the gold and silver produced by a mine in the Dominican Republic under a streaming deal agreed to by the two companies, The Denver Business Journal reported.

Denver-based Royal Gold will get a percentage of the gold production from the Pueblo Viejo open pit mine attributable to Toronto-based Barrick’s 60 percent stake in the mine. (Vancouver-based Goldcorp owns the remaining 40 percent.)

In exchange for an up-front payment of $610 million, Barrick has agreed to supply Royal Gold with 7.5 percent of Barrick’s share of the gold produced at Pueblo Viejo until a cutoff of 990,000 ounces is reached, and 3.75 percent after that.

Also, Barrick will supply the Denver company with 75 percent of Barrick’s interest in the silver produced at Pueblo Viejo, based on a fixed 70 percent recovery rate, until 50 million ounces have been delivered, and 37.5 percent after that.

In addition to the $610 million, Royal Gold also will pay Barrick 30 percent of the spot price per ounce of gold and silver until certain thresholds are reached, and then 60 percent of the spot price.

Barrick has been selling off assets and is trying to reduce debt in the face of slumping precious-metal prices,Bloomberg reported.

“This agreement adds revenue from yet another high quality, long lived asset to Royal Gold’s portfolio and, when coupled with three other transactions in recent months, significantly diversifies our revenue sources,” said Tony Jensen, Royal Gold's president and CEO. "It provides our shareholders with substantial resource conversion optionality and a favorable entry point in the commodity cycle. Opportunities of this caliber and magnitude are rare and we are pleased to partner with Barrick on this world-class operation.”

Royal Gold announced last month that it had agreed to pay New Gold Inc. of Vancouver $175 million for a percentage of production from the Rainy River gold and silver mine in Ontario, Canada.

Royal Gold said it “expects to sell the [Pueblo Viejo] gold and silver shortly after receiving each delivery, and will recognize revenue from the sale of the delivered gold and silver after the sale has occurred.”

The transaction was effective as of July 1 for gold and will take effect next Jan. 1 for silver. Closing is expected within 90 days.

Royal Gold expects 18 years of further production at the mine, which began production in 2013.