RYMM PR
Royal Mines and Minerals Corp. Signs LOI to Form and Fund a Joint Venture in Mexico
7:00a ET October 29, 2009 (Market Wire)
Royal Mines and Minerals Corp. (OTCBB: RYMM) ("Royal Mines"), an exploration stage company, is pleased to announce the signing of a Letter of Intent with Golden Anvil, SA de CV ("Golden Anvil) with respect to the formation and funding of a joint venture for the exploration, development, production and refining of gold and silver from mineral concessions (the "Mineral Concessions") located in the State of Nayarit, Mexico.
The Mineral Concessions owned by Golden Anvil cover 13,035 acres and Royal Mines currently has management on location of the Mineral Concessions touring the operations, evaluating historical data and performing initial due diligence. The Mineral Concessions are currently being mined at a rate of 85 tons per day, which produces approximately 24 tons of concentrate per month. We have received approximately 15 tons of concentrate from Golden Anvil and we are currently processing it through our refining circuit and plating-out the metals from the pregnant solution.
Under the terms of the Letter of Intent executed on October 21, 2009, Royal Mines would acquire a 50% undivided interest in the joint venture by providing funding of $3.0 million, of which $1.5 million will be used to purchase additional equipment and refurbish and relocate the existing concentration plant and $500,000 will pay existing liabilities related to the Mineral Concessions. The balance of $1.0 million will be loaned to Golden Anvil to fund the costs of a repurchase of outstanding shares from shareholders of Golden Anvil. The $1.0 million loan will be repaid by Golden Anvil within 12 months from the date of funding.
