Royal Road Minerals Ltd (CVE:RYR) says it's reached a "significant milestone" - agreeing a definitive agreement with Economias Sociales del Comun (ECOMUN) in support of its gold and copper exploration projects in Nariño Province and elsewhere in Colombia.
The company believes the deal is "innovative, unique and of significant importance" to Colombia and its aspirations for responsible investment and sustained peace.
As reported in September, ECOMUN is a joint social and economic organization established in May this year, in the wake of the final peace agreement, between the Government of Colombia and the Revolutionary Armed Forces of Colombia People's Army (FARC-EP) which was inked in November 2016.
In connection with the agreement, Jenny Arias, formerly the company's vice president for responsible development, to the board of directors.
Among eleven key terms outlined, are that ECOMUN will work decisively in order to obtain the support of community and indigenous leaders in the 'area of influence'.
Also the parties will collaborate to formalize currently illegal mining operations in the area of influence with a specific focus on eradicating the use of mercury and assisting operators in meeting their operational, environmental and social obligations.
In exchange for Ecomun's performance of its obligations, Royal Road will grant it a net smelter royalty equal to one percent (1%) of the gold and copper produced from its mining projects in Narino Province.
"Completing the definitive agreement with ECOMUN is a significant milestone and the final piece of paperwork in what has been a year of deal-making for Royal Road," said Dr Timothy Coughlin, Royal Road´s president and chief executive.
"This agreement and the appointment of Jenny to the Board, reaffirms our commitment to generating economic benefits locally and to high standards of social and environmental performance.
"Our agreements in Colombia and also in Nicaragua, provide the company's experienced technical and operational teams with unique exposure and access to what we believe are some of Latin America's most highly prospective and under-explored regions".
Royal Road has applied for more than 400,000 hectares of concession contracts covering what management believe is highly prospective geology for both gold and copper-gold in Narino province.