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Royal Road Minerals Limited (TSXV: RYR,OTC:RRDMF) (OTCQB: RRDMF) ("Royal Road" or the "Company") is pleased to announce that the mining concession application subject to the Company's previously disclosed binding Option Agreement (see Press Release December 14, 2021) has been formally converted and published as a granted Mining Concession Contract as of 5 January 2026 (the "Chuscalita Title"). The Chuscalita Title has an initial term of 30 years, in accordance with Colombian mining law. With the Chuscalita Title now granted, Royal Road has made a USD$150,000 payment to the titleholders and, in doing so, has satisfied the relevant condition under the Option Agreement. Drilling activities on the property are now underway.
Option Agreement Summary
Under the Option Agreement, Royal Road has secured the exclusive right to acquire an 80% interest in the Chuscalita Title, which is located adjacent to the Company's GüÃntar Mining Concession Contract.
In accordance with the Option Agreement, Royal Road previously made a USD$100,000 option payment, and following the formal conversion of the application to the Chuscalita Title, the Company has now made a further USD$150,000 payment to the titleholders.
Royal Road may, at any time, elect to exercise its option and acquire an 80% interest in the Chuscalita Title by making a one-time cash payment of USD$1,125,000 to the titleholders. Upon exercise of the option, the remaining 20% interest retained by the titleholders will be free-carried until the completion of a successful feasibility study delivered in connection with, or incorporating, the Chuscalita Title. Upon delivery of such feasibility study, the 20% interest will convert to a 2% net smelter returns ("NSR") royalty on metals extracted from the Chuscalita Title, which royalty may be purchased by Royal Road for USD$10 million.
Exploration Upside and Next Steps
The Chuscalita Title is located adjacent to Royal Road's existing GüÃntar landholding and lies along interpreted gold-copper and silver mineralized trends extending from the GüÃntar Project. As illustrated in Figure 1, these trends support the Company's view that the Chuscalita Title represents a logical extension of the broader GüÃntar porphyry-skarn system and a priority target for drilling.
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With tenure now secured and initial consideration paid, Royal Road is integrating the Chuscalita Title into its district-scale geological model and advancing drilling as part of its ongoing GüÃntar exploration program.
"The granting of the Chuscalita Title is a significant milestone for Royal Road," said Tim Coughlin, President and CEO. "Our work at GAM has consistently indicated that the mineralized system extends beyond the GüÃntar title boundary, and securing this ground was an obvious and necessary step. Within a Colombian portfolio covering approximately 1,840 square kilometers of concession contracts and applications, Chuscalita stands out as a priority opportunity. We are excited to test it for deep porphyry potential and are grateful to the Colombian regulatory authorities and the titleholders for their encouragement and constructive engagement in advancing this process."
About Royal Road Minerals
Royal Road Minerals Limited is a mineral exploration and development company with its head office and technical-operations centre located in Jersey, Channel Islands. The Company is listed on the TSX Venture Exchange under the ticker RYR, on the OTCQB under the ticker RRDMF, and on the Frankfurt Stock Exchange under the ticker RLU.
Royal Road's mission is to apply expert skills and innovative technologies to the process of discovering and developing copper and gold deposits of a scale large enough to benefit future generations, and modern enough to ensure minimum environmental impact and no net loss of biodiversity. The Company currently conducts exploration activities in Colombia and in the Kingdoms of Saudi Arabia and Morocco.
Further information can be found on the Company's website at www.royalroadminerals.com.
Neither the 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.
The scientific and technical information contained in this news release has been prepared, reviewed and approved by Dr. Tim Coughlin, BSc (Geology), MSc (Exploration and Mining Geology), PhD, FAusIMM, President and Chief Executive Officer of Royal Road Minerals Limited and a Qualified Person as defined under National Instrument 43-101.
Cautionary statement:
This news release contains certain statements that constitute forward-looking information and forward-looking statements within the meaning of applicable securities laws (collectively, "forward-looking statements") describing the Company's future plans and the expectations of its management that a stated result or condition will occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company, or developments in the Company's business or in the mineral resources industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about, among other things, future economic conditions and courses of action, and assumptions related to government approvals, and anticipated costs and expenditures. The words "plans", "prospective", "expect", "intend", "intends to" and similar expressions identify forward looking statements, which may also include, without limitation, any statement relating to future events, conditions or circumstances. Forward-looking statements of the Company contained in this news release, which may prove to be incorrect, include, but are not limited to the Company's exploration plans.
The Company cautions you not to place undue reliance upon any such forward-looking statements, which speak only on the date they are made. There is no guarantee that the anticipated benefits of the Company's business plans or operations will be achieved. The risks and uncertainties that may affect forward-looking statements include, among others: economic market conditions, anticipated costs and expenditures, government approvals, and other risks detailed from time to time in the Company's filings with Canadian provincial securities regulators or other applicable regulatory authorities. Forward-looking statements included herein are based on the current plans, estimates, projections, beliefs and opinions of the Company management and the Company does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.
Quality Assurance and Quality Control:
Sample preparation and analyses in Colombia are conducted according to standard industry procedures. Drill core and saw-cut channel samples are crushed, split and pulverized prior to analysis of Gold by fire assay and Atomic Absorption and multi-elements by ICP-AES and ICP-MS after four acid digestion. Soil samples are sieved to -200 mesh and analyzed for Gold by fire assay and ICP AES and multi-elements by ICP-AES and ICP-MS after aqua regia digestion. Analytical performance is monitored by means of certified reference materials (CRMs), coarse blanks, coarse and pulp duplicate samples. Surface samples have been prepared in ALS Chemex preparation lab in Colombia and analyses have been completed in ALS Chemex Lima.
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