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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) (...
About this update from Royal Road Minerals Limited
[{"type":"text","content":"Royal Road Minerals Enters into Definitive Agreement for the Sale of Its 50% Interest in the Luna Roja Gold Project in NicaraguaToronto, 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 CompanyThe 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 desc...