Royal Road Minerals Announces Execution of Definitive Agreement with Economias Sociales Del Comun (ECOMUN), Colombia Appointment of Board Director
Royal Road Minerals Announces Execution of Definitive
Agreement with Economias Sociales Del Comun
(ECOMUN), Colombia
Appointment of Board Director
Toronto, Ontario--(Newsfile Corp. - December 18, 2017) - Royal Road Minerals Limited (TSXV: RYR) ("Royal Road" or the
"Company") is pleased to announce that, as anticipated in its binding framework agreement (see Press Release September 26,
2017), it has now entered into a final definitive agreement (the "Agreement") with ECOMUN in support of its gold and copper
exploration projects in Nariño Province and by mutual agreement, elsewhere in Colombia. In connection with the foregoing, the
Company is also pleased to announce the appointment of Jenny Arias (formerly the Company's Vice President, Responsible
Development) to the Board of Directors.
Royal Road has submitted application for in excess of 400,000 hectares of Concession Contracts covering known gold and
copper occurrences in what management believe is highly prospective geology in Nariño province of southern Colombia.
The Agreement with ECOMUN provides for the support of Royal Road's long-term mineral exploration and development plans in
Colombia, aligns Royal Road with the Colombian Government's post-conflict aspirations, as contemplated by the British
Embassy's Business and Peace Initiative (to which Royal Road is a signatory), and demands an exemplary level of social
engagement and environmental stewardship from both parties.
ECOMUN is a joint social and economic organization, which was formed by Presidential Decree on May 29, 2017, with funding
and other support provided by the Colombian government and with the aim of collective and individual economic and social
reincorporation of the members of the Revolutionary Armed Forces of Colombia People's Army (FARC-EP), in accordance with
the final peace agreement, between the Government of Colombia and the FARC-EP on November 24, 2016.
This Agreement, which is the first of its kind since the 2016 peace agreement, includes the following key terms:
Social and environmental programs conducted under the Agreement will be managed by a Management Committee
comprised of two representatives from Royal Road and ECOMUN and one independent representative
Community Liaison Committees will be established and will report to the Management Committee
The parties will collaborate to formalize currently illegal mining operations in the area of influence with a specific focus on
eradicating the use of mercury and assisting operators in meeting their operational, environmental and social obligations
under the law
ECOMUN will provide Royal Road with collaboration and assistance with obtaining the social license necessary for it to
carry out exploration and future development of mineral projects in Nariño Province and elsewhere in Colombia subject to
mutual agreement
ECOMUN will work decisively in order to obtain the support of community and indigenous leaders in the area of influence
ECOMUN will assist Royal Road in working with local ethnic and non-ethnic communities to enable it to gain the support
for its operations and to implement its social and community programs
The activities of the parties are to be carried out in accordance with ECOMUN's corporate purpose and the Colombian
Governments initiative of achieving the reincorporation of members of the FARC-EP into civilian life
In all aspects pertaining to environmental and social risk management, Royal Road will follow performance standards that
are in line with the Equator Principles
In exchange for ECOMUN's performance of its obligations under the definitive agreement, Royal Road will grant to
ECOMUN a net smelter royalty equal to one percent (1%) of the gold and copper produced from its mining projects in
Nariño Province. This royalty is entirely for the benefit of local communities and both parties and the Management
Committee will collaborate to ensure fully transparent distribution of funds
Additionally, Royal Road will grant a net smelter royalty (the "NSR") equal to one percent (1%) of the gold and copper
produced from its mining projects in Nariño Province on a case by case basis, directly to community managed institutions
The royalty is non-transferable up to the point of commercial production of the projects, provided that if ECOMUN or
community managed institutions wish to transfer or alienate the NSR prior to such time, ECOMUN or community managed
institutions must offer to transfer the NSR to Royal Road's subsidiary, which will then have the exclusive right to purchase
the NSR for a sum in Colombian pesos equivalent to ten million United States of America dollars (US $10,000,000) per
1% of the NSR, with proceeds destined entirely for the benefit of local communities and both parties and the Management
Committee collaborating to ensure a fully transparent distribution of funds
Management believe that the agreement with ECOMUN is innovative, unique and of significant importance to Colombia and its
aspirations for responsible investment and sustained peace. The agreement requires Royal Road Minerals to follow
performance standards in line with the Equator Principles and to apply exemplary best practices in regards to social
engagement and environmental stewardship. In recognition of these importance commitments, the Company's Board of
Directors has appointed Jenny Arias to the new role of Executive Director, Responsible Development. Jenny was formerly the
Company's Vice President, Responsible Development. Jenny graduated with a degree in Biology from the National University of
Colombia; she has a postgraduate certificate in Anthropology and Development Processes from the Sapienza University in Italy,
a diploma in Environmental Management from the Technical University in Dresden, Germany and a Masters in Conservation
Leadership from Cambridge University, UK. Jenny is from Nariño Province in Southern Colombia, where she has worked with
local government and with NGOs and indigenous authorities in the region. She has designed and implemented environmental
policies at the national level as well as leading projects to promote community-based conservation with small farmers and
indigenous communities in areas of socio-environmental conflict. Jenny has worked for the United Nations Development
Program, coordinating and participating in national initiatives, such as the National Biodiversity Strategy and Action Plan
(NBSAP) and the expansion of the policy proposal to protect traditional knowledge systems.
Dr. Timothy Coughlin, Royal Road´s President and Chief Executive Officer, stated: "Completing the definitive agreement with
ECOMUN is a significant milestone and the final piece of paperwork in what has been a year of deal-making for Royal Road.
This agreement and the appointment of Jenny to the Board, reaffirms our commitment to generating economic benefits locally
and to high standards of social and environmental performance. Our agreements in Colombia and also in Nicaragua, provide
the Company's experienced technical and operational teams with unique exposure and access to what we believe are some of
Latin America's most highly prospective and under-explored regions".
Neither
the
TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary statement:
This news release contains certain statements that constitute forward-looking information
and forward-looking statements
within the meaning of applicable securities laws
(collectively,
"
forward-l
ooking statements
"
) including
statements relating to
the
framework agreement
and
those describing
the Company
'
s
future plans and the expectations of its management that a
state
d result or condition will occur
. Such forward-looking
statements involve known and unknown risks, uncertainties and
other factors that may
cause the actual results, performance or achievements of
the Company
, or
developments in
the
Company
's business or in the
mineral resources
industry, or with respect to
the
framework
, to differ materially from the
anticipated results, performance,
achievements or developments expressed or implied by such forward-looking statements.
Forward-looking statements include all disclosure regarding possible events, conditions or
results of operations that is based
on assumptions about, among other things, future
economic conditions and courses of action, and assumptions related to
government
approvals, and anticipated costs and expenditures.
The words
"
plans
"
,
"
prospective
"
,
"
expect
"
,
"
intend
"
,
"
intends
to
"
and similar expressions identify forward looking
statements, which
may also include, without limitation, any
statement
relating to future events, conditions or circumstances.
Forward-looking statements
of the Company contained in this news
release, which may prove to be incorrect, include, but are not limited to,
those related to the
framework agreement and any
definitive agreement contemplated thereby
,
Ecomún
, and
the
Company's plans exploration plans
.
The Company
caution
s
you not to place undue reliance upon any such forward-looking statements, which
speak only as of
the date they are made. There is no guarantee that the anticipated benefits of the
framework
and the Company
's
business
plans or operations
will be achieved. The risks and uncertainties that may affect
forward-looking statements include, among
others: economic market conditions, anticipated
costs and expenditures, government approvals, and other
risks detailed
from time to time in
the Company
's
filings with Canadian provincial
securities regulators
or other applicable regulatory
authorities
. Forward-looking statements included herein are based
on
the
current plans, estimates, projections, beliefs and
opinions
of the Company
management and
, in part,
on
informat
ion provided to the Company by Hemco
, and, except as
required by law,
the Company
do
es
not undertake any
obligation to update forward-looking statements should assumptions
related to these plans,
estimates, projections, beliefs and opinions change.
For further information please contact:
Dr. Tim
othy
Coughlin
President and Chief Executive Officer
USA-Canada toll free 1800 6389205
+44 (0)1534 887166
+44 (0)7797 742800