Business
Royal Road Minerals Announces Sale of Turkish Subsidiary and Resignation of Director
TORONTO, ON / ACCESSWIRE / November 25, 2015 / Royal Road Minerals Limited (TSXV: RYR) ("Roy...
About this update from Royal Road Minerals Limited
[{"type":"text","content":"Royal Road Minerals Announces Sale of Turkish Subsidiary and Resignation of DirectorTORONTO, ON / ACCESSWIRE / November 25, 2015 / Royal Road Minerals Limited (TSXV: RYR) (\"Royal Road Minerals\" or the \"Company\"), a gold focused mineral exploration and development company, announces that it has entered into an agreement (the \"Purchase Agreement\") with Ravello Investment Group Limited. (\"RIG\"), pursuant to which the Company agreed to sell and RIG agreed to purchase, all of the issued share capital of Tigris Eurasia Madencilik Sanayi ve Ticaret Limited Şirketi (the \"Subsidiary\"), the Company's wholly-owned Turkish subsidiary, that holds the Company's exploration and mining licenses with respect to its Pertek project, its exploration database for Turkey, and certain other equipment and assets related to its former operations in Turkey, which have now been discontinued.\nIn accordance with the Purchase Agreement, as consideration for the sale of the Subsidiary, the Company will receive a cash payment of US$250,000 on the completion of transaction. In addition, RIG agreed to pay to the Company an aggregate royalty equal to 1% of the net smelter returns from the sale of all mineral products that are produced or extracted by or on behalf of the Subsidiary from its properties comprising the Pertek project and any new further properties acquired through use and application of the Subsidiary's existing exploration database. RIG will also pay to the Company an amount equal to 5% of the proceeds received by the Subsidiary, RIG and their respective affiliates in connection with the sale of any part of such properties or any other properties that any such party acquires using information from the Subsidiary's existing exploration database, less the costs incurred by the Subsidiary in the exploration and development and sale of the disposed properties. The closing of the transaction is subject to the satisfaction of certain statutory closing conditions and is expected to occur on or before December 11, 2015. \nResignation of Director\nThe Company also announces that coincident with this transaction, Dr. Kerim Sener, the Ariana Resources plc representative on the Royal Road board, will be resigning as a director of the Company. In this regard, Peter Mullens, Chairman of the Company's Board of Directors stated: \"On behalf of the...