- Royal Road Minerals Limited (RYR) has entered into binding agreements for a mining concession contract and an application for a mining concession contract owned by an individual applicant
- The properties underlying the concession contract and the application are located near the Guintär copper and gold project in Colombia
- An initial payment of USD$150,000 is expected for the concession contract and in the case of the application USD$100,000
- The payments provide Royal Road the right to earn an 80 per cent interest in the concession contract and application
- Royal Road Minerals Limited (RYR) is up 12.5 per cent trading at $0.315 per share as of 2:55 p.m. EST
Royal Road Minerals Limited (RYR) has entered into binding agreements for a mining concession contract and a mining concession contract application.
The properties underlying the concession contract and the application are located near the Guintär copper and gold project in Colombia.
An initial payment of US$150,000 is expected for the concession contract and in the case of the application, US$100,000.
The payments provide Royal Road with the right to earn an 80 per cent interest in the concession contract and application.
A follow-up payment of US$100,000 will be allotted for the contract once certain regulatory approvals are attained.
An additional payment of US$150,000 will occur on the conversion of the application to a concession contract.
Royal Road will be responsible for all properly incurred obligations, liabilities, expenses, and regulatory costs related to the contract.
At any point after the payment, Royal Road may exercise its option to acquire an 80 per cent interest in the contract by making a one-time payment of USD$2.25 million.
For the application, the same can be done by making a one-time payment of US$1.125 million
In both cases, the 20 per cent interest retained by the applicants will be free carried until a successful feasibility study is done.
At that point, the interest will be converted to a 2 per cent net smelter returns royalty for metals extracted from the underlying properties.
Royal Road has a right of first refusal on any sale of either of the 20 per cent interests up until the point of conversion to a net smelter royalty.
Royal Road Minerals Limited (RYR) is up 12.5 per cent trading at $0.315 per share as of 2:55 p.m. EST.