Royal Road Minerals Enters into Option and Royalty and Cash and Royalty Paying Formalization Agreements with Two Producing Gold Mines; Colombia
Royal Road Minerals Enters into Option and
Royalty and Cash and Royalty Paying
Formalization Agreements with Two Producing
Gold Mines; Colombia
Toronto, Ontario--(Newsfile Corp. - October 24, 2023) - Royal Road Minerals Limited (TSXV: RYR)
("Royal Road" or the "Company") is pleased to announce that its 100% owned Colombian subsidiary
Exploraciones Northern Colombia SAS ("
ENC
"), has entered into two formalization-based agreements
with producing gold mines in the Antioquia and Caldas Departments of Colombia.
The Aleman Option and Royalty Agreement
ENC has executed an Option and Royalty Agreement (the "
Aleman
Agreement
") with respect to the "El
Aleman" gold mining concession contract (the "
Aleman
Concession Contract
") owned by individual
titleholders (the "
Titleholders
") and located in Colombia's Antoquia Department. The Aleman
Agreement replaces a Binding Heads of Agreement which was entered into between the Company and
the Titleholders in December of 2021 (see Press Release December 14, 2021).
The property underlying the Aleman Concession Contract is located immediately adjacent to the
Company's Guintär copper and gold porphyry project where the Company has intersected significant
porphyry-style mineralization including,
GUI-DD-012,
303.7 meters at 0.8% copper
equivalent
1
(including 62.0 meters at 2.1 grams per tonne gold, 12.4 grams per tonne silver and
0.62% copper), GUI-DD-013, which returned 126.0 meters at 0.9% copper equivalent (1.2 grams
per tonne gold equivalent), GUI-DD-020 which returned 118.0 meters at 0.8% copper equivalent
and GUI-DD-021 which returned 181.0 meters at 0.9% copper equivalent (1.1 grams per tonne
gold equivalent
; see press releases December 14, 2021, April 28, 2022 and June 28, 2022). In 2022
the Company conducted exploratory drilling on the Aleman Concession Contract area and intersected
encouraging results including ALM-DD-001,
80.5 meters at 1 gram per tonne gold, including 18
meters at 3 grams per tonne gold
(see Press Release June 28, 2022).
Under the terms of the Option and Royalty Agreement, the Company can acquire 100% of the Aleman
Concession Contract. Summary terms are as follows:
Royalty Commitment: The Titleholders shall pay a 3% Net Smelter Returns royalty to ENC which is
payable quarterly for a period of 20-years (the current term of the company's Guintär concession
contract) or until the Company exercises its Option to acquire an 80% interest in the Concession
Contract
Option Agreement: At any point, Royal Road may exercise its option to acquire an 80% interest in
the Concession Contract by making a one-time payment to the Titleholders of USD$2.25 million
Free Carry: Following such payment, the 20% interest retained by the Titleholders shall be free
carried until a successful feasibility study is delivered in connection with or incorporating the
Aleman concession contract, at which point this interest will be converted to a 2% net smelter
returns royalty. The net smelter returns royalty may be purchased by Royal Road for a sum of
USD$20 million
Further Terms: Traditional representations and warranties by the Titleholders including compliance
with all regulatory requirements at all times, payment of all taxes, duties, and other government
payments, maintenance of minimum investments required by law, and performance of all acts and
all obligations under applicable law required to maintain the Aleman Concession Contract in good
standing
The El Tambo Purchase and Sale Agreement
ENC has entered into an agreement (the "
El Tambo Agreement
") to sell 100% of its "El Tambo"
mining concession contract (GDI-138) located in Cauca Department to Esplendor CH S.A.S
("
Esplendor
"), a Colombian gold mining company in exchange for a 2% Net Smelter Return royalty
(
NSR
) payable over a 5-year term, and a cash consideration.
The El Tambo mining concession contract is located in Cauca Department and is approximately 4000
hectares in area. The concession contract was acquired through the Company's purchase of Northern
Colombia Holdings Limited, an affiliate of AngloGold Ashanti Limited ("AGA"; see Press Release May
31, 2019). The area underlying the El Tambo mining concession contract contains gold mineralized
quartz veins some of which continue along-strike and extend onto Esplendor's contiguous underground
mining operation. Esplendor's mining operation is
Fairmined Certified
. This agreement is expected to
significantly boost production from extensions to Esplendor's vein bodies which continue directly from
active underground workings onto the El Tambo concession contract area.
Summary deal terms are as follows:
Cash Consideration: Esplendor will make five cash payments totaling COP$700M (approximately
USD$177,000) to ENC in exchange for the transfer of the El Tambo mining concession contract
with payments linked to progress throughout the regulatory stages of title transfer
Royalty Commitment: Esplendor shall pay a 2% NSR to ENC on a quarterly basis and for a period
of five years from the commencement of commercial production from within the El Tambo
concession contract area
Further Terms: Esplendor shall be bound to the terms of the Share Purchase Agreement entered
into between the Company and AGA
"These agreements reflect our ongoing commitment to the formalization of informal mining operations in
Colombia and illustrate our intention of assuring our Colombian interests are responsibly self-
sustaining," said Tim Coughlin, Royal Road's President and CEO.
About Royal Road Minerals
Royal Road Minerals is a mineral exploration and development company with its head office and
technical-operations center located in Jersey, Channel Islands. The Company is listed on the TSX
Venture Exchange under the ticker RYR and on the Frankfurt Stock Exchange under the ticker RLU. The
Company's mission is to apply expert skills and innovative technologies to the process of discovering
and developing copper and gold deposits of a scale large enough to benefit future generations and
modern enough to ensure minimum impact on the environment and no net loss of biodiversity. The
Company currently explores in the Kingdom of Saudi Arabia, Argentina, Morocco and Colombia. More
information can be found on the Company's website
www.royalroadminerals.com
.
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.
The information in this news release was compiled, reviewed and verified by Dr. Tim Coughlin, BSc
(Geology), MSc (Exploration and Mining), PhD (Structural Geology), FAusIMM, President and CEO of
Royal Road Minerals Ltd and a qualified person as defined by National Instrument 43-101. Royal Road
Minerals employees are instructed to follow standard operating and quality assurance procedures
intended to ensure that all sampling techniques and sample results meet international reporting
standards. More information can be found on Royal Road Minerals web site at
www.royalroadminerals.com
.
Quality Assurance and Quality Control:
Sample preparation and analyses are conducted according to standard industry procedures. Drill core
and saw-cut channel samples are crushed, split and pulverized prior to analysis of Gold by fire assay and
Atomic Absorption and multi-elements by ICP-AES and ICP-MS after four acid digestion. Soil samples
are sieved to -200 mesh and analyzed for Gold by fire assay and ICP AES and multi-elements by ICP-
AES and ICP-MS after aqua regia digestion. Analytical performance is monitored by means of certified
reference materials (CRMs), coarse blanks, coarse and pulp duplicate samples. Surface samples have
been prepared in ALS Chemex preparation lab in Colombia and analyses have been completed in ALS
Chemex Lima.
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") 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, 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 the Company's 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
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 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:
Tim Coughlin
Phone: +44 (0)1534 887166
1
Copper and gold equivalent calculations assume Gold $1985/ounce, Copper $3.58/lb and Silver $23.0/ounce and 90% metallurgical recoveries.
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https://www.newsfilecorp.com/release/185058