Royal Road Minerals has signed an agreement to form a strategic alliance with Hemco for mineral exploration in Nicaragua.
The partnership is aimed at identifying and exploring gold and copper targets in the existing licences held by Royal Road and Hemco in the country.
Together, the licences comprise more than 35 identified prospect areas.
Under the agreement, the parties are expected to exchange their databases and jointly fund early stage exploration programmes.
Royal Road Minerals president and CEO Dr Tim Coughlin said: “We are proud to be aligned with such a respected partner in Nicaragua and excited to have acquired access to the 'Golden Triangle' area, which in addition to our Nariño project in Colombia, provides the company with another region of gold and copper exploration potential.
“Moreover, with funding expected to be contributed by Hemco, we anticipate being in a position to drill test the underlying potential of the exciting Los Andes porphyry copper and gold target, whilst also commencing the planned drilling programme at Piedra Iman on an accelerated basis.”
The companies are also expected to jointly seek advancement of their existing projects and explore new developments.
Once drilling activity begins at any project, the companies will hold the corresponding rights and licences through a newly formed joint venture firm with equal ownership.
The projects under the alliance will comprise drilling activity at Royal Road’s Piedra Iman project, prospect inventory mapping and heliborne magnetics and radiometrics in Hemco’s Golden Triangle licensed areas.
The initial focus of the partnership will be to define recoverable reserves of more than two million ounces of gold.