Royal Road Minerals Enters into Definitive Agreement for the Sale of Its 50% Interest in the Luna Roja Gold Project in Nicaragua
Royal Road Minerals Enters into Definitive
Agreement for the Sale of Its 50% Interest in
the Luna Roja Gold Project in Nicaragua
Toronto, Ontario--(Newsfile Corp. - March 1, 2021) - Royal Road Minerals Limited (TSXV: RYR) ("
Royal
Road
" or the "
Company
") is pleased to announce that
further to its news release dated December 17,
2020, it has entered into a definitive agreement (the "
Definitive Agreement
") with Mineros S.A.
("
Mineros
"), pursuant to which the Company has agreed to sell to Mineros its entire 50% interest in the
Luna Roja Project, comprising the Monte Carmelo I and Monte Carmelo II mining concessions, in
Nicaragua. The Luna Roja Project is currently jointly owned and operated by the Company and Hemco -
Nicaragua S.A., a wholly-owned subsidiary of Mineros, pursuant to the terms of a strategic alliance
agreement (the "
Strategic Alliance Agreement
") dated September 1, 2017 between the Company and
as amended.
Under the terms of the Definitive Agreement, the Company agreed to sell and Mineros agreed to
purchase the Company's 50% interest in the Luna Roja Project on the following key terms:
Purchase Price
- Mineros will pay to the Company a purchase price of (i) US$22.5 million
payable in cash on the closing of the proposed transaction, plus (ii) a 1.25% net smelter royalty on
all future mineral production from the Monte Carmelo I and Monte Carmelo II mining concessions
commencing from the first production therefrom
Expenditure Commitment
- The Company will invest US$7.5 million over a five year period in
exploration joint ventures carried on by Mineros and the Company
The transaction is expected to close on or around May 21, 2021. The Strategic Alliance Agreement will
continue in effect with respect to the Company's other projects in Nicaragua, including its Caribe Project
and other projects operated thereunder.
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-looking
statements") including statements relating to the proposed sale transaction described herein and
those describing the Company's future plans and the expectations of its management that a stated
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 transaction, 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
transaction, the Company and the Company's plans exploration plans.
The Company cautions 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 proposed sale transaction 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 information provided to the Company by Mineros and its affiliates, and, except as required by law,
the Company does 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. Timothy Coughlin
President and Chief Executive Officer
+44 (0)1534 887166
+44 (0)7797 742800
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/75706