Royal Road Minerals Announces Sale of Non-Operational Mexican Assets Through Spinoff of Shares of Caza Gold Corp.
Royal Road Minerals Announces Sale of Non-Operational
Mexican Assets Through Spinoff of Shares of Caza Gold
Corp.
Toronto, Ontario--(Newsfile Corp. - July 6, 2017) - Royal Road Minerals Limited (TSXV: RYR) ("
Royal Road Minerals
")
announces that it has completed an internal reorganization to facilitate the disposal of non-operational assets in Mexico and
streamline its corporate structure. Through this reorganization, ownership of Royal Road Minerals' key operating subsidiary in
Nicaragua was transferred by Caza Gold Corp. ("
Caza Gold
") to Royal Road Minerals, and its non-operational assets in Mexico
were disposed of through the sale of an aggregate of 134,886,372 common shares (the "
Caza Shares
") in the capital of Caza
Gold to an arm's length purchaser, Generic Capital Corporation (the "
Purchaser
"), in exchange for a cash payment (the "
Share
Sale
"). The Share Sale is expected to improve the organizational efficiency of Royal Road Minerals, but is otherwise
insignificant to its current business operations. Royal Road Minerals plans to continue its focus on the exploration and
advancement of its Piedra Iman and Los Andes projects in Nicaragua (formerly held through Caza Gold) and its projects in
southern Colombia.
Following completion of the Share Sale, Royal Road holds 2,936,177 common shares in the capital of Caza Gold, representing
approximately 1.92% of the Caza Gold's issued and outstanding common shares and, as a result, Royal Road Minerals has
ceased to beneficially own, or have control or direction over, 10% or more of the issued and outstanding common shares of
Caza Gold.
Royal Road also plans to dispose of these remaining shares under the terms of the Share Sale.
The
Share
Sale
was carried out
by
Royal Road Minerals
pursuant to
Section 2.
8
of National Instrument 45-102
—
Resale of
Securities.
This news release is issued in accordance with the early warning requirements under applicable Canadian securities laws. A
copy of the early warning report required to be filed will be available under the profile of Caza Gold Corp. or Royal Road
Minerals, as applicable, on the System for Electronic Document Analysis and Retrieval at
www.sedar.com
.
For further details, please see the Early Warning Report, a copy of which is available on Royal Road Mineral's profile on SEDAR
at
www.sedar.com
. The head office of Caza Gold Corp. is located at 301 — 700 West Pender Street, Vancouver, British
Columbia V6C 1G8.
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.
For further information please contact:
Dr. Tim
othy
Coughlin
President and Chief Executive Officer
USA-Canada toll free 1800 6389205
+44 (0)1534 887166