Ravello Investment Group will take over Pertek gold exploration project from junior mining company Royal Road Minerals.
Royal Road Minerals Limited reported that it has closed its purchase and sales 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 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.