Wednesday, October 27, 2010

Royal Mines and Minerals Corp. (RYMM.OB) Joint Ventures with Golden Anvil to Develop Gold and Silver Claims in Mexico

Royal Mines and Minerals, www.royalmmc.com – the minerals exploration firm with a clear strategy based on extraction, the licensing of a proprietary lixiviation process and joint venturing/acquiring in North America, reported execution of a memorandum of understanding (MOU) for a joint venture with Golden Anvil, SA de CV today to explore/develop Golden’s mineral claims in Nayarit, Mexico.

The two companies have formed a 50/50 ownership Nevada corporation, Golden Anvil, Inc. (GAI) towards this end, with GAI acting as operator.

According to the stipulations set forth in the MOU, RYMM will put $3M into GAI, resulting in transfer of some 32,521 acres of mineral claims and all assets of Golden’s ore concentration plant into GAI.

An advancement of $600k directed towards securing land for plant upgrading/relocation has been made by RYMM and operations are projected to commence within the space of 30 days.

Initial projected output of 100 tons of head ore/day, resulting in some 35 tons of concentrate within the first month, are expected to more than double by the second month (200 tons of head ore and 75 tons of concentrate).

The MOU also calls for the raising of $300k by RYMM within 45 days to facilitate retirement of specific mining claim debts; additionally RYMM will provide approximately 45-60 days working capital until the project becomes self-funding with positive cash flow.

With conservative estimates of 5 oz Au and 200 oz Ag per ton of concentrate, this deal looks like a real winner for both RYMM and Golden (further details are available in the SEC-filed MOU).

Director of Operations at RYMM, Mike Boyko, is on-site in Mexico with the Golden team quantifying operational parameters at the plant and has already taken steps to secure a concentration specialist to oversee the first two weeks of operations.

The Company continues to develop its proprietary lixiviation processes, both in the lab and at RYMM’s Phoenix facility, testing ores from the US, Canada and Mexico, as well as Bolivia, Chile, Ecuador, Guyana, Peru and the Philippines.

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