RRM has entered into a binding letter of intent with Carbomine SARL, which provides the company with an option to acquire 100% of the Lalla Aziza mining license, located in the Kingdom of Morocco.
Lalla Aziza is an underground copper-mine located in Morocco’s Western High Atlas, approximately 90 kilometers southwest of Marrakesh. Sulphide ore (principally chalcopyrite) is mined from moderate-dipping, shear-hosted sheeted-sulphides, vein-stockworks and breccia up to 12 meters wide and from three underground levels over a vertical interval of 150 meters. Whole ore is shipped for sale at a cut-off grade of 2.5% copper (Non-JORC compliant, 35 dry-ton ore assay records, minimum 0.99% maximum 5.1% copper).
Lalla Aziza is located at the southwestern extent of Carbomine’s mining license area. The mineralized shear-hosted vein-stockworks and breccia are nucleated on a carbonaceous schist horizon which extends diagonally in a northeast direction across the license area for approximately 4 kilometers strike length. Small-scale workings and anomalous copper rock-chip samples have been collected by Carbomine along the length of the schist horizon. No exploration drilling has been conducted on the license area.
Royal Road intends to complete mapping, underground and surface rock-chip and soil geochemical sampling with a view to drill-testing potential along-strike and down-dip at Lalla Aziza by early 2025.
The summary of the legally binding terms of the LOI includes Royal Road making a payment to Carbomine of USD$50,000 upon execution of the LOI, followed by a period of 120-days to conduct an exploration work program at Lalla Aziza, terminating on December 29, 2024. Dependent on the outcome of the exploration programs, Royal Road will intend to drill-test Lalla Aziza in Q1 2025 for at least 2000 total aggregate meters. Upon receipt of all requisite drilling permits, Royal Road shall make a one-time payment of USD$200,000 to Carbomine. On or before the date being 60-days after completion of the drilling program, Royal Road shall have a one-time option to acquire the Lalla Aziza license for a payment of USD$1,500,000.
Further considerations subject to decision gates include a payment of USD$2,500,000 by RRM to Carbomine upon completion of the first bankable feasibility study. Upon commencement of commercial production RRM shall grant a 2.5% net smelter royalty to Carbomine. An annual fee of USD$300,000 will be paid by RRM to Carbomine after acquisition of the Lalla Aziza license until completion of the bankable feasibility study.
In Colombia Royal Road Minerals operates through its wholly-owned Colombian companies Minerales Camino Real SAS founded in 2015 and Exploraciones Northern Colombia SAS acquired from previous owners in 2019. In Argentina Royal Road Minerals operates through its wholly owned Argentinian company, Minerales Camino Real Argentina. In Saudi Arabia and Morocco the Company operates through its 50% owned Saudi Arabian registered subsidiary, Royal Road Arabia.
Copyright 2024. Royal Road. All rights reserved
