November 25, 2015 – Toronto, Ontario: Royal Road Minerals Limited (TSXV:RYR) (“Royal Road Minerals” or the “Company”), a gold focused mineral exploration and development company, announces that it has entered into an agreement (the “Purchase Agreement”) with Ravello Investment Group Limited. (“RIG”), pursuant to which the Company agreed to sell and RIG agreed to purchase, all of the issued share capital of Tigris Eurasia Madencilik Sanayi ve Ticaret Limited Şirketi (the “Subsidiary”), the Company’s wholly-owned Turkish subsidiary, that holds the Company’s exploration and mining licenses with respect to its Pertek project, its exploration database for Turkey, and certain other equipment and assets related to its former operations in Turkey, which have now been discontinued.
In accordance with the Purchase Agreement, as consideration for the sale of the Subsidiary, the Company will receive a cash payment of US$250,000 on the completion of transaction. In addition, RIG agreed to pay to the Company an aggregate royalty equal to 1% of the net smelter returns from the sale of all mineral products that are produced or extracted by or on behalf of the Subsidiary from its properties comprising the Pertek project and any new further properties acquired through use and application of the Subsidiary’s existing exploration database. RIG will also pay to the Company an amount equal to 5% of the proceeds received by the Subsidiary, RIG and their respective affiliates in connection with the sale of any part of such properties or any other properties that any such party acquires using information from the Subsidiary’s existing exploration database, less the costs incurred by the Subsidiary in the exploration and development and sale of the disposed properties. The closing of the transaction is subject to the satisfaction of certain statutory closing conditions and is expected to occur on or before December 11, 2015.
Resignation of Director
The Company also announces that coincident with this transaction, Dr. Kerim Sener, the Ariana Resources plc representative on the Royal Road board, will be resigning as a director of the Company. In this regard, Peter Mullens, Chairman of the Company’s Board of Directors stated: “On behalf of the Company’s Board of Directors, I would like to thank Kerim for his valuable contributions as a Director, including his valuable perspective with respect to the Company’s former operations in Turkey and the early support provided by him and Ariana Resources in the development of our exploration strategy in Turkey. We thank him for supporting the Company’s recent decision to focus its operations on Colombia and on advancing the La Golondrina Project in Colombia. We wish him and Ariana Resources well with their future endeavors in Turkey”.
About Royal Road Minerals:
Royal Road Minerals is a gold focused exploration and development company. The Company’s objective is to advance the exploration and development of the La Golondrina project in Colombia. The Company’s priority is the discovery and acquisition of high-grade, high-margin gold projects in highly prospective regions. Royal Road Minerals has a strong social and environmental conscience and aims to exemplify world’s best practice in regards to all aspects of gold exploration and development.
Neither 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. This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as “plan,” “expect,” “project,” “intend,” “believe,” “anticipate” and other similar words, or statements that certain events or conditions “may” or “will” occur and include statements regarding the sale of the shares of the Subsidiary and the objectives of the Company. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, mine site planning and development, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices, permitting and licensing and other factors described above and in the Company’s most recent annual information form under the heading “Risk Factors”, which has been filed electronically by means of the Canadian Securities Administrators’ website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management’s estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.
For further information please contact:
Investor Relations USA-Canada toll free 1800 6389205 +44 (0)1534 887166 firstname.lastname@example.org