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Royal Road Minerals Enters Agreements to Formalize Mining Activities at the El Gualtal Gold Mine, Narino District, Colombia
Toronto, Ontario--(Newsfile Corp. - October 2, 2019) - Royal Road Minerals Limited (TSXV: RYR)...
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[{"type":"text","content":"Royal Road Minerals Enters Agreements to Formalize Mining Activities at the El Gualtal Gold Mine, Narino District, ColombiaRoyal Road to Receive 3% Gold Royalty and Earn-in Option to Acquire 70% InterestToronto, Ontario--(Newsfile Corp. - October 2, 2019) - Royal Road Minerals Limited (TSXV: RYR) (\"Royal Road\" or the \"Company\") is pleased to announce that its Colombian subsidiary, Exploraciones Northern Colombia SAS (\"ENC\"), has entered into a formalization agreement (the \"Formalization Agreement\") and a related earn-in option and royalty agreement (collectively, the \"Agreements\") with Sociedad Minera San Antonio S.A.S. (\"San Antonio\"), a company representing the interests of informal miners that have been carrying out small-scale mining activities at the El Gualtal (formerly \"La Locura\") gold mine, located within ENC's mining concession contract FD5-10k, in Samaniego Municipality of Nariño District, Colombia (the \"Concession\"). The Agreements were negotiated and entered into by the Company with San Antonio under the framework of the Colombian government's National Policy for Mining Formalization adopted by the Ministry of Mines and Energy. Under the terms of the Formalization Agreement, a specific portion of the area under the Concession (Figure 2) will be returned by ENC so that a new concession contract (the \"El Gualtal Concession\") over such returned area may be granted to San Antonio for the benefit of over 1000 informal miners, enabling the implementation of legal and responsible mining operations at the El Gualtal gold mine. In exchange, ENC will receive a quarterly royalty equivalent to 3% of the doré extracted from the El Gualtal Concession and has been granted the sole and exclusive right to carry out all exploration activities on the El Gualtal Concession and the right to acquire 70% of the El Gualtal Concession, subject to the completion of certain exploration milestones as summarized below.About the El Gualtal Gold MineThe El Gualtal gold mine is a shallow-dipping, quartz-carbonate vein system, with 75 room and pillar style production adits, developed over at-least nine different levels and 140 meters of vertical separation. The mine is one of the largest informal mining operations located in the prolific La Llanada Goldfield (Figure 1). Information about historic gold production reveals ...