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Toronto, Ontario--(Newsfile Corp. - September 3, 2024) - Royal Road Minerals Limited (TSXV: RYR) ("Royal Road" or the "Company") is pleased to announce that it has entered into a binding letter of intent (the "LOI") with Carbomine SARL ("Carbomine"), which provides the Company with an option to acquire 100% of the Lalla Aziza mining license ("Lalla Aziza"), 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 (see Figure 1). Sulphide ore (principally chalcopyrite; see Figure 2) 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).
Figure 1
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Figure 2
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Lalla Aziza is located at the southwestern extent of Carbomine's mining license area (see Figure 3). 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.
Figure 3
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Summary legally binding terms of the LOI are as follows:
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Royal Road have paid to Carbomine the sum of USD$50,000 upon execution of the LOI
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For a period that is 120-days from the date of the LOI (terminating on December 29, 2024) Royal Road shall, on a sole and exclusive basis, be entitled to conduct an exploration work program at Lalla Aziza
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On or before the date being 60-days following completion of the exploration program to the satisfaction of Royal Road, Royal Road shall be entitled in its sole and absolute discretion to proceed with drill testing targets at Lalla Aziza
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If Royal Road elects to proceed with a drilling program at Lalla Aziza, it shall commit to a program of at-least 2000 total aggregate meters and the parties shall enter into a definitive agreement incorporating the binding terms and following the form and function of the LOI
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Upon receipt of all requisite drilling permits, Royal Road shall make a one-time payment of USD$200,000 to Carbomine
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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
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Further Payments/Consideration
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Upon the completion of the first bankable feasibility study on the property and the drawdown of project finance for the purpose of such feasibility study, RRM shall pay Carbomine the sum of USD$2,500,000
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Upon commencement of commercial production RRM shall grant a 2.5% net smelter royalty to Carbomine
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Following acquisition of the Lalla Aziza license and until completion of the bankable feasibility study, Royal Road shall pay an annual fee of USD$300,000 to Carbomine
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