Under the deal, the partnership will identify and explore gold and copper targets in specified existing licenses of both firms in the country.
With around 35 currently identified prospect areas, the companies will cover large regions of prospective and under-explored land areas in Nicaragua.
Through early stage exploration programs, the firms will share their collective experience and databases to advance their current projects and act on new projects in the country.
Specifically, the partnership will focus on determining reserves to recover in excess of two million ounces of gold.
As per terms of the deal, Hemco and Royal Road will equally fund the operations, including initial project generation and exploration of targets.
A new joint venture (JV) firm will be created, after receiving permission for drilling on any project area that will be defined as designated project area (DPA). The firms will hold an equal 50% proportionate equity interest in the new JV firm.
The initial program that will secure approval under the alliance includes drilling at Royal Road’s Piedra Iman project, as well as inventory mapping and heliborne magnetics and radiometrics in Hemco’s “Golden Triangle” licensed area.
In addition, the partnership will also drill two deep holes to test the porphyry copper and gold potential of Royal Road’s Los Andes project.
Royal Road president and CEO Dr Tim Coughlin said: “We are proud to be aligned with such a respected partner in Nicaragua and excited to have acquired access to the “Golden Triangle” area which, in addition to our Nariño project in Colombia, provides the Company with another region of gold and copper exploration potential.”
Hemco is a subsidiary of Grupo Mineros, which is Colombia’s gold producer and holds licenses that covers an area of around 200,000 hectares in the mining region called Golden Triangle located in the northeastern Nicaragua.
