Royal Mines Signs MOU for a JV With Golden Anvil
October 27 2010 - 7:00AM
Marketwired
Royal Mines and Minerals Corp. (OTCBB: RYMM) (Royal Mines), an
exploration stage company focused on the development of mining
projects in North America, is pleased to report that the company
has executed a Memorandum of Understanding (MOU) for a joint
venture in the exploration, development and production of mineral
claims owned by Golden Anvil, SA de CV (Golden Anvil) in the State
of Nayarit, Mexico.
Royal Mines and Golden Anvil have formed a Nevada corporation,
Golden Anvil, Inc. (GAI), in which each company has a fifty percent
(50%) ownership. GAI will act as the operating corporation for the
joint venture between Royal Mines and Golden Anvil. Upon Royal
Mines contributing a total $3,000,000, within the timeline outlined
in the MOU, Golden Anvil will transfer 32,521 acres of mineral
claims (as defined in the MOU) and all the assets of Golden Anvil's
ore concentration plant into GAI.
To date, Royal Mines has advanced Golden Anvil $600,000, of the
$3,000,000, to pay costs to secure land needed for the
concentration plant and to fund the relocation and upgrading of the
plant. We expect the plant to begin operations within 30 days, at
an initial projected production rate of 100 tons of head ore per
day, from which we project to produce up to 35 tons of concentrate
the first month of operation. Within the second month of operation,
we project to increase the production rate to 200 tons of head ore
per day, producing up to 75 tons of concentrate per month.
In accordance with the MOU, Royal Mines plans to raise and
contribute an additional $300,000, within 45 days, to pay for
specific mining claim debts and to provide 45 to 60 days working
capital, after which we expect the operation to produce a positive
cash flow. Based on the limited tonnage of Golden Anvil concentrate
Royal Mines has processed in the past, we anticipate each ton of
concentrate to contain approximately 5 oz of gold and 200 oz of
silver. Prior to relocating the concentration plant, Royal Mines
had processed and poured approximately 25 oz of gold and 400 oz of
silver from the Golden Anvil concentrate.
Mike Boyko, Director of Operations for Royal Mines, is presently
in Mexico with the Golden Anvil team performing preliminary
operational tests at the plant. We plan to have a concentration
specialist on-site at the plant the first two weeks of operation to
ensure the plant is operating at its optimized concentrating
capability. For additional information, please read the MOU which
has been filed with SEC.
Royal Mines is continuing to develop and improve its
environmentally friendly lixiviation processes both in the
laboratory and in our facility in Phoenix, and we are testing ores
and evaluating projects from the United States, Canada, Mexico,
Ecuador, Bolivia, Peru, Chile, Guyana and the Philippines.
About Royal Mines and Minerals Corp.:
Royal Mines and Minerals Corp. is a minerals exploration
company. Our primary objectives are to 1) commercially extract and
refine precious and base metals from our own and others mining
assets, 2) joint venture, acquire and develop mining projects in
North America, and 3) generate ongoing revenues from the licensing
of our proprietary, environmentally-friendly lixiviation process.
We have not yet realized significant revenues from our primary
objectives. Additional information is available on Royal Mines'
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. In particular, there are no assurances that the
proposed joint venture will be formalized on the terms contemplated
or at all or that Royal Mines will be successful in raising the
balance of funding required to meet the joint venture financing to
be provided by it. In addition, the date the concentration plant
begins operations is subject to many uncertainties and there is no
assurance that positive cash flow will be achieved when
contemplated or at all. There is also no assurance that future
concentrates produced from the Golden Anvil Mine will yield the
same recovery as concentrates previously processed by Royal
Mines.
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.
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For more information contact: Royal Mines and Minerals Corp.
Jason S. Mitchell CFO, Secretary and Treasurer (702) 588-5973 Email
Contact
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