Royal Road Minerals Ltd (TSX-V:RYR, OTC:RRDMF) has entered into a binding letter of intent (LOI) with Carbomine SARL, granting the company an option to acquire 100% of the Lalla Aziza mining license in Morocco.
The Lalla Aziza underground copper mine is located in Morocco's Western High Atlas. It primarily produces sulphide ore, particularly chalcopyrite, from shear-hosted, vein-stockworks, and breccia zones up to 12 meters wide across three underground levels over a vertical span of 150 meters.
The ore is sold at a cut-off grade of 2.5% copper, with assays ranging from 0.99% to 5.1% copper, Royal Road noted in a release.
The company plans to conduct an exploration program at Lalla Aziza, including mapping, underground and surface rock-chip and soil sampling, with the goal of drill-testing by early 2025.
Under the terms of the LOI, Royal Road has made an initial payment of US$50,000 to Carbomine. The company has 120 days from the date of the LOI to complete its exploration program. If Royal Road decides to proceed with drilling, it will commit to a minimum of 2,000 meters of drilling and make a one-time payment of US$200,000 to Carbomine upon receiving the necessary drilling permits.
Royal Road also has the option to acquire the Lalla Aziza license for US$1.5 million within 60 days of completing the drilling program. Additional payments include US$2.5 million upon completion of a bankable feasibility study and project financing, and an annual fee of US$300,000 until the feasibility study is completed.
Carbomine will also receive a 2.5% net smelter royalty upon commencement of commercial production.