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Royal Road Minerals Enters into Further Mining Formalization Agreements at the La Candelaria and San Miguel Gold Mines in Nariño and Executes Heads of Agreement with Colombian Miner, Latminco S.A.S, Colombia
Toronto, Ontario--(Newsfile Corp. - April 29, 2020) - Royal Road Minerals Limited (TSXV: RYR) ...
About this update from Royal Road Minerals Limited
[{"type":"text","content":"Royal Road Minerals Enters into Further Mining Formalization Agreements at the La Candelaria and San Miguel Gold Mines in Nariño and Executes Heads of Agreement with Colombian Miner, Latminco S.A.S, ColombiaToronto, Ontario--(Newsfile Corp. - April 29, 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 formalization agreements (the \"Formalization Agreements\") and related earn-in option and royalty agreements (collectively, the \"Agreements\") with the proprietors of the La Candelaria and San Miguel informal gold mines located in the municipality of Los Andes-Sotomayor, Nariño district, Colombia. The La Candelaria and San Miguel mines are 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).Currently Royal Road has entered into four mining formalization agreements in Nariño (see also press releases October 2, 2019 and April 22, 2020; Figure 1). The Agreements were negotiated and entered into under the framework of the Colombian government's National Policy for Mining Formalization wherein specific portions of the area held under concession by ENC will be returned directly to informal miners so that new concession contracts (\"Formalized Concessions\") over such returned areas may be granted, enabling legal and responsible mining operations to take place. In exchange, ENC will receive a quarterly royalty equivalent to 3% of the doré extracted from the Formalized Concessions and has been granted the sole and exclusive right to carry out all exploration activities on the Formalized Concessions and the right to acquire 70% of the Formalized Concessions, subject to the completion of certain exploration milestones as summarized below. In-case the Company assists in further optimizing mine operations on Formalized Concessions, ENC may increase the royalty to be received by a further 1%.The Company is also pleased to announce that it has executed a Heads of Agreement (\"HOA\") with Colombian mining company Latminco S.A.S (\"LMC\"). LMC is a resource company established to develop traditional g...