Contact Information: For more information contact: Royal Mines and Minerals Corp. Jason S. Mitchell CFO, Secretary and Treasurer (702) 588-5973
Royal Mines and Minerals Corp. Signs LOI to Form and Fund a Joint Venture in Mexico
| Source: Royal Mines and Minerals Corp.
HENDERSON, NV--(Marketwire - October 29, 2009) - 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.
About Royal Mines and Minerals Corp.:
Royal Mines and Minerals Corp. is a minerals exploration company. Our
primary objectives are to 1) generate ongoing revenues from the licensing
of our proprietary, environmentally-friendly lixiviation process, 2)
commercially extract and refine precious and base metals from our own and
others mining assets, and 3) joint venture, acquire and develop projects in
North America. We have not yet realized significant revenues from our
primary objectives. Additional information is available on its website at
www.royalmmc.com and in its filings with the U.S. Securities and Exchange
Commission.
Forward-Looking Statements
Statements in this news release that are not historical facts are
forward-looking statements that are subject to risks and uncertainties.
Words such as "expects," "intends," "plans," "may," "could," "should,"
"anticipates," "likely," "believes" and words of similar import also
identify
forward-looking statements. Forward-looking statements are based on current
facts and analyses and other information that are based on forecasts of
future results, estimates of amounts not yet determined and assumptions of
management.
Cautionary Note to Investors
The United States Securities and Exchange Commission permits mining
companies, in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or produce. We
use certain terms on this press release, such as "reserves," "resources,"
"geologic resources," "proven," "probable," "measured," "indicated," and
"inferred," that the SEC guidelines strictly prohibit us from including in
our filings with the SEC. Investors are urged to consider closely the
disclosure in our SEC filings, File No. 000-52391. You can review and
obtain copies of these filings from the SEC's website at
http://www.sec.gov/edgar.shtml.