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Royal Road Minerals Enters Agreements to Formalize Mining Activities at the La Esmeralda Gold Mine, Nariño District, Colombia
Toronto, Ontario--(Newsfile Corp. - April 22, 2020) - Royal Road Minerals Limited (TSXV: RYR) ...
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[{"type":"text","content":"Royal Road Minerals Enters Agreements to Formalize Mining Activities at the La Esmeralda Gold Mine, Nariño District, ColombiaToronto, Ontario--(Newsfile Corp. - April 22, 2020) - 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 a formalization agreement (the \"Formalization Agreement\") and a related earn-in option and royalty agreement (collectively, the \"Agreements\") with the proprietors of the La Esmeralda Gold Mine (\"La Esmeralda\"), an informal gold mine located in the municipality of Los Andes-Sotomayor, Nariño district, Colombia. La Esmeralda is located within concession contract HH2-12001X (\"the Concession\"), held by AngloGold Ashanti (AGA), pending assignment to ENC pursuant to a Stock Purchase Agreement dated March 4, 2019 (see press release March 5, 2019). The Agreements were negotiated and entered into by the Company with La Esmeralda 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 will be returned by the Company so that a new concession contract (the \"La Esmeralda Concession\") over such returned area may be granted to La Esmeralda, enabling legal and responsible mining operations to resume at the La Esmeralda gold mine. In exchange, ENC will receive a quarterly royalty equivalent to 3% of the doré extracted from the La Esmeralda Concession and has been granted the sole and exclusive right to carry out all exploration activities on the La Esmeralda Concession and the right to acquire 70% of the La Esmeralda Concession, subject to the completion of certain exploration milestones as summarized below. In-case the Company assists in further optimizing mine operations and increasing production at La Esmeralda, ENC may increase the royalty to be received by a further 1%.About the La Esmeralda Gold MineThe La Esmeralda gold mine is a shallow-dipping, quartz-carbonate vein and vein-stockwork system located and hosted in the \"roof-zone\" and adjacent contact zone of a tonalite intrusion and overlying and adjacent carbonaceous shale sequences. The mine is one of many...