21 Dec Press Release, 21st December 2015
ROYAL ROAD MINERALS ANNOUNCES CLOSURE OF TURKISH PURCHASE AND SALES TRANSACTION
December 21, 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 closed its purchase and sales 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 has received a cash payment of US$250,000. In addition, RIG has 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.
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.
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