Royal Road MineralsLtd. said April 4 that it acquired an option to fully acquire the LaRedención gold project in Colombia from Mesias Oliver Acosta Benavides, EubertoErnesto Calderon and Jesus Yerobi Santander.
To earn a 100% stake in the project, the company will assistoptionors with up to US$20,000 to complete all ongoing regulatory work and to acquireapprovals for exploration activities on the license area. The company will pay US$20,000upon acquisition of such approvals and US$25,000 when the company starts drillingon the project, as well as US$30,000 in three installments through the third anniversaryof the above approvals.
The company is required to complete a minimum 750 meters of drillingat La Redención by the third anniversary.
After making the payments and completing exploration, the companymay notify the optionors of its plan to initiate a feasibility study before thethird year. If, after completing the study, the company determines that developmentis justified, it may exercise the option, subject to a 20% net profit royalty.
Otherwise, Royal Road will have to pay US$10,000 per annum forup to five years.
The La Redención gold project covers a 25-hectare mining licenseand has not been drill-tested, but exposure in underground development reveals themineralized system has similar geological characteristics with the company's neighboringLa Golondrina goldproject.
In January, Royal Road secured an exclusive right to conduct exploration and legal due diligenceon the Mina La Redención gold project property in the Nariño province of southernColombia for a period of three months.