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Royal Road Minerals Executes Binding Heads of Agreement Over Properties Located Proximal to Its Guintar Project; Colombia
Toronto, Ontario--(Newsfile Corp. - December 14, 2021) - Royal Road Minerals Limited (TSXV: R...
About this update from Royal Road Minerals Limited
[{"type":"text","content":"Royal Road Minerals Executes Binding Heads of Agreement Over Properties Located Proximal to Its Guintar Project; ColombiaToronto, Ontario--(Newsfile Corp. - December 14, 2021) - Royal Road Minerals Limited (TSXV: RYR) (\"Royal Road\" or the \"Company\") is pleased to announce that it has entered into two binding Heads of Agreements with respect to, on the one hand, a mining concession contract (the \"Concession Contract\") owned by titleholders (the \"Titleholders\") and on the other hand, an application (the \"Application\") for a mining concession contract, owned by an individual applicant and its nominees (the \"Applicants\"). The properties underlying the Concession Contract and the Application are, in each case, located proximal to the Company's Guintär copper and gold project in Antioquia Department, Colombia.The Heads of Agreements contain the following basic terms:An initial payment (the \"Option Payment\") of, in the case of the Concession Contract USD$150,000 and in the case of the Application USD$100,000, which provides Royal Road with the exclusive right to earn an 80% interest in the Concession Contract and in the Application, respectively A subsequent payment, in the case of the Concession Contract, of a further USD$100,000 once certain regulatory approvals are attained and, in the case of the Application, a further USD$150,000 on the conversion of the Application to a concession contract In the case of the Concession Contract, Royal Road will be responsible for all properly incurred obligations, liabilities, expenses and regulatory costs related with regulatory approvals up to a capped limit of USD$500,000 At any point following the Option Payment, Royal Road may exercise its option to acquire an 80% interest in the Concession Contract by making a one-time payment of USD$2.25 million and in the Application by making a one-time payment of USD$1.125 millionIn both cases, the 20% interest retained by the Titleholders and the Applicants, respectively, will be free carried until a successful feasibility study is delivered in connection with or incorporating the relevant property, at which point this interest will be converted to a 2% net smelter returns royalty in relation to metals extracted from the underlying properties, which may be purchased by Royal Road for USD$20 million in the case of the Concession Contr...