Royal Road Minerals Limited (CVE:RYR) announced Tuesday that it is planning to raise up to $8 million to close the acquisition of exploration assets in Colombia from mining major AngloGold Ashanti.
The Toronto-based company is offering up to 40 million shares at a price of $0.20 for gross proceeds of up to $8 million.
In a statement Tuesday, the company said that it is in discussions with an unnamed investor to purchase approximately $5 million worth of shares issued in the offering.
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The Colombian acquisition includes mining concession agreements covering approximately 36,000 hectares, as well as the rights to acquire mining concessions over approximately 215,000 hectares in the Nariño, Cauca and Antioquia departments of Colombia.
Royal Road said it intends to close its previously announced acquisition of Northern Colombia Holdings Limited from Compañía Kedahda Limited, an affiliate of AngloGold Ashanti Limited, by May 31 and satisfy or waive its financing condition by May 4, 2019 in order to proceed with the transaction.
The exploration company also announced that it is acquiring the remaining 2% minority equity interest in Minerales Camino Real SAS, its Colombian subsidiary. Under the terms of the acquisition, Royal Road will issue 1.2 million shares as consideration for the minority equity interest.
Shares of Royal Road traded at $0.17 in Canada on Tuesday.
Contact Angela at angela@proactiveinvestors.com
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