Royal Road Minerals | Deal Structure
17595
page-template-default,page,page-id-17595,page-child,parent-pageid-17585,ajax_leftright,page_not_loaded,,qode-theme-ver-10.1.1,wpb-js-composer js-comp-ver-5.0.1,vc_responsive
 

Deal Structure

LA GOLONDRINA PROJECT – OPTION AGREEMENT

Royal Road has executed an Option Agreement (effective as of Oct 6th, 2015) which provides the Company with a three-year option to acquire 100% of La Golondrina, provided the following conditions are met:

 

  • Over the three year term Royal Road must drill a minimum of 1500 meters and produce a feasibility study. Royal Road will make a USD $50k payment to the owner on initiation of the drilling program and provide cash payments to the owner of USD $20kpa whilst the option is in force
  • If the feasibility proves positive and Royal Road makes the decision to commence construction, the Company will exercises it option and acquire 100% of the project
  • If at the time of completion the feasibility proves uneconomic, Royal Road may extend its option to commence construction for up to a further three years (until conditions improve) by paying the owner USD $20kpa
  • If the Company develops the project to commercial production, at such time, the owner will have the option to elect to receive one of the following two payment alternatives:
    • 20% net profit royalty to be paid once payback of all capital invested to expand and construct the operation has been made; and
    • 15% net profit royalty, to be paid once payback of all capital invested to expand and construct the operation has been made plus a 1% net smelter royalty