Royal Road Minerals

Primary ticker: TSXV:RYR
Stage of development: Exploration
Commodity: Gold, Copper
Project to promote: Luna Roja, Caribe, GNM
Project location:
Colombia, Nicaragua
Company presentation: Click here

Live financials

Cash: CAD$3M
Debt: Nil

Major shareholders:
Agnico Eagle Mines Limited – 19%
Mackenzie Financial – 6%
Management Ownership – 10%

Royal Road Minerals is a discovery-focused explorer, seeking Tier 1-scale copper and gold assets and is the largest exploration title holder in Colombia and Nicaragua. The Company has three current gold and copper-gold drill projects, an extensive pipeline of early-stage exploration projects and an innovative program aimed at sustaining cash flow and accessing gold assets through the formalization of informal miners in southern Colombia. The Company is signatory to the British Embassy’s Business and Peace initiative in Colombia and has executed a strategic alliance agreement with a post-conflict cooperative in Colombia.

Management Profile

Tim Coughlin, President & CEO

Tim is a geologist, he has a BSc, MSc (Exploration and Mining) and a PhD. Over the last 30-years Tim has worked on exploration for major companies, mid-tiers and as a consultant in Australia, PNG, China, Latin America, Russia, Europe and the US. Before founding and financing his own companies, Tim was Chief Geologist for AngloGold Ashanti in South America. In 2006 Tim founded TSX-listed Lydian International and discovered the 5Moz Amulsar gold deposit in Armenia. Tim resigned from Lydian when mine construction began in 2014 and formed Royal Road Minerals. Royal Road commenced life in SE-Turkey and gained access to some exciting and underexplored districts there, until conflict broke out between the Kurdish community and the Turkish military. Royal then moved to Colombia and listed in 2015.

What is your rationale for attending 121 Mining Investment?

We are raising awareness as aspects of our business model begin to evolve.

What recent news would you like to highlight to investors attending?

April 29 2020, Royal Road Minerals Enters into Further Mining Formalization Agreements at the La Candelaria and San Miguel Gold Mines in Nariño and Executes Heads of Agreement with Colombian Miner, Latminco S.A.S, Colombia
March 3 2020, Royal Road Minerals Enters into Definitive Strategic Alliance Agreement with Mineros S.A. for Colombian Joint Venture
Oct 2 2019, Royal Road Minerals Enters Agreements to Formalize Mining Activities at the El Gualtal Gold Mine, Narino District, Colombia
Royal Road to Receive 3% Gold Royalty and Earn-in Option to Acquire 70% Interest
Oct 1 2019, Royal Road Announces Results from Final Three Scout Drill Holes at Its Luna Roja Skarn Gold Project; Nicaragua
Intersects 69m at 1.5 grams per tonne gold and confirms gold mineralization in 450m step-out

What are your key goals for the next 3, 6 and 12 months?

3 Months:

Positive further drill results from Luna Roja and GNM

6 Months:

Positive further drill results from Luna Roja, GNM and Caribe. Access and drill prep at El Gualtal

12 Months:

Resource at Luna Roja and GNM, porphyry discovery Caribe, commence drilling at El Gualtal and other assets in southern Colombia

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

The biggest risks on all our exploration assets are ESG-related.

What do you think makes your company such a compelling investment?

Both quality advanced and early stage assets. Experienced and well-known team.

Analyst Insight – provided by Independent Investment Research

Royal Road Minerals is a TSX-V-listed gold and copper exploration and development company, focused on projects with Tier 1 potential in Nicaragua and Colombia.

The company advances its exploration programs either solely or in joint venture relationships with local and international mining companies and is the largest exploration licence or license application holder in both Colombia and Nicaragua.

In Colombia, the company’s application package in the southern block and the package it purchased in 2019 from AngloGold Ashanti in the northern block, hosts prime exploration targets. In the high-grade La Llanada goldfield, the company has been waiting for the recently completed digital cadastre in Colombia (ANNA Mineria) in-order to advance on the formalization of the El Gualtal (65k ounce per year) mine operation and eight other currently informal gold operations in the region.

The formalization process is a crucial first step in building trust and attaining long-term social license in complex post-conflict regions such as Nariño. In exchange for formalizing these mine operations Royal Road receives a royalty equal to 3% of gold production and where applicable (where potential is evident, such as at Gualtal), we negotiate an option agreement to earn back into the project.

In Colombia’s northern block, work has focused on advancing the company’s joint-venture agreement with Colombia’s Mineros S.A and on mapping and underground channel sampling at Guintar. Reconnaissance work, focused initially on the recently granted Filadelfia gold title, is also now underway.

In Nicaragua, ground magnetics and gravity surveys are nearing completion at the Luna Roja gold-skarn and nearby Caribe gold-breccia projects. Once final data is in and integrated with existing mapping and geochemistry, it will be used to identify follow-up drill targets on both projects. Some 6,000 metres of drilling is planned at Luna Roja and Caribe for 2020, with an initial resource expected at Luna Roja sometime later in the year.