Summary of the option agreement
Under the Option Agreement, Royal Road has acquired the exclusive right to acquire an 80% interest in the Chuscalita title, which is adjacent to the company’s Güíntar mining concession contract.
Pursuant to the Option Agreement, Royal Road previously made an option payment of USD$100,000, and following the formal conversion of the application to the Chuscalita title, the Company has now paid a further USD$150,000 to the titleholders.
Royal Road may at any time elect to exercise its option and acquire an 80% interest in the Chuscalita Title by making a one-time cash payment of USD$1,125,000 to the titleholders. Upon exercise of the option, the remaining 20% interest retained by the titleholders will be transferred free of charge until the completion of a successful feasibility study conducted in connection with or incorporating the Chuscalita title. Upon completion of such feasibility study, the 20% interest will convert to a 2% net smelter return (“NSR”) royalty on metals from the Chuscalita title, which royalty may be purchased by Royal Road for USD$10 million.
Upside Down Exploration and Next Steps
The Chuscalita title is adjacent to the existing Royal Road Güíntar landholding and lies along interpreted gold-copper and silver mineralized trends extending from the Güíntar project. As illustrated in Figure 1, these trends support the Company’s view that the Chuscalita title represents a logical extension of the broader Güíntar porphyry skarn system and a priority target for drilling.
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With title rights secured and initial compensation paid, Royal Road is integrating the Chuscalita title into its district-level geological model and advancing drilling as part of its ongoing Güíntar exploration program.
“The awarding of the Chuscalita designation is an important milestone for Royal Road,” said Tim Coughlin, President and CEO. “Our work at GAM has consistently shown that the mineralized system extends beyond the Güíntar title boundary, and securing this land was an obvious and necessary step. Within a Colombian portfolio that includes approximately 1,840 square kilometers of concession contracts and applications, Chuscalita stands out as a priority opportunity. We are excited to test it for deep porphyry potential and are grateful to the Colombian regulatory authorities and titleholders for their encouragement and constructive engagement in furthering this process.”
About Royal Road Minerals
Royal Road Minerals Limited is a mineral exploration and development company with its headquarters and technical operations center in Jersey, Channel Islands. The company is listed on the TSX Venture Exchange under the ticker RYR, on the OTCQB under the ticker RRDMF, and on the Frankfurt Stock Exchange under the ticker RLU.
Royal Road’s mission is to apply expert skills and innovative technologies to discover and develop copper and gold resources on a scale large enough to benefit future generations, and modern enough to ensure minimal impact on the environment and no net loss of biodiversity. The company currently conducts exploration activities in Colombia and in the kingdoms of Saudi Arabia and Morocco.
More information can be found on the company’s website: www www.royalroadminerals.com.
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.
The scientific and technical information contained in this press release has been prepared, reviewed and approved by Dr. Tim Coughlin, BSc (Geology), MSc (Exploration and Mining Geology), PhD, FAusIMM, President and Chief Executive Officer of Royal Road Minerals Limited and a qualified person as defined under National Instrument 43-101.
Warning:
This press release contains certain statements that constitute forward-looking information and forward-looking statements within the meaning of applicable securities laws (collectively, “forward-looking statements”) that describe the Company’s future plans and management’s expectations that a particular outcome or circumstance will occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or developments in the Company’s business or in the mineral resources industry, to be materially different from any anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include any disclosures regarding possible events, circumstances or results of operations that are based on assumptions about, among other things, future economic conditions and courses of action, and assumptions regarding governmental approvals and expected costs and expenses. The words “plan”, “prospective”, “expect”, “intend”, “intend” and similar expressions identify forward-looking statements, which may also include, without limitation, any statement regarding future events, conditions or circumstances. Forward-looking statements made by the Company in this press release, which may prove to be incorrect, include, but are not limited to, the Company’s exploration plans.
The Company cautions you not to place undue reliance on such forward-looking statements, which speak only as of the date on which they are made. There is no guarantee that the expected benefits of the Company’s business plans or activities will be realized. The risks and uncertainties that may affect forward-looking statements include, among others: economic market conditions, expected costs and expenses, government approvals and other risks described from time to time in the Company’s filings with Canadian provincial securities regulators or other applicable regulatory authorities. The forward-looking statements contained herein are based on the current plans, estimates, projections, beliefs and opinions of the Company’s management and the Company undertakes no obligation to update any forward-looking statements if assumptions regarding these plans, estimates, projections, beliefs and opinions change.
Quality assurance and quality control:
Sample preparation and analyzes in Colombia are performed according to standard industrial procedures. Drill core and saw-cut channel samples are crushed, split and pulverized prior to analysis of gold by fire testing and atomic absorption and multi-elements by ICP-AES and ICP-MS after four acid digestions. Soil samples are sieved to -200 mesh and analyzed for gold by fire testing and ICP AES and multi-elements by ICP-AES and ICP-MS after fermentation with aqua regia. Analytical performance is monitored using certified reference materials (CRMs), coarse blanks, coarse and pulp duplicate samples. Surface samples were prepared at the ALS Chemex preparation laboratory in Colombia and analyzes were completed at ALS Chemex Lima.
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