Dallas, Texas (November 17, 2011) – StockGuru Shines its Spotlight on Royal Mines and Minerals Corp. (OTCBB: RYMM). The Company announced yesterday that Golden Anvil S.A. de C.V. has entered into a letter of intent with Gainey Capital Corp., a Toronto Stock Exchange Venture (“TSX-V”) company. It closed on November 16, 2011, at $0.032, trading in a fifty-two week range of $0.096 – 0.02.
Under the terms of the LOI, Gainey Capital has agreed to acquire from Golden Anvil, directly or indirectly, certain assets (the “Assets”) comprising of certain mineral concessions located in the western portion of the Sierra Madre occidental mountain range in Mexico (the “El Colomo Concessions”), a concentration plant located in Huajicori, Nayarit, and other associated assets and equipment, including a tailing reservoir, a mine site housing camp and a mine site industrial facility.
It is intended that the acquisition of the Assets (the “Acquisition”) will be Gainey Capital’s Qualifying Transaction in accordance with the policies of the TSX-V. Upon completion of the Transaction, it is expected that the Company will be a Tier 2 mining issuer.
As consideration for the acquisition of Assets, Gainey Capital has agreed to pay Golden Anvil aggregate consideration as follows:
a. the issue of 12,000,000 previously unissued common shares in the capital of Gainey Capital (the “Shares”) to Golden Anvil, which shall be issued on the day of the completion of the Acquisition (the “Closing Date”); and
b. the issue of a special warrant of the Company (the “Special Warrant”) to Golden Anvil or its nominee, which shall be issued effective as of the Closing Date. The Special Warrant will be convertible, for no additional consideration, from time to time, subject to an aggregate maximum of 3,000,000 common shares, into that number of common shares equal to the number of ounces of gold or gold equivalent, categorized as “proven mineral reserves” (as such terms are defined by the Canadian Institute of Mining, Metallurgy and Petroleum), upon receipt by the Company and/or Golden Anvil of a technical report prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) by an independent qualified person (as defined in NI 43-101) in relation to the El Colomo Concessions on or before October 21, 2015.
Royal Mines has loaned Golden Anvil a total of $1,000,000 over the last couple years, and if the acquisition is completed Royal Mines expects to either receive common shares in the capital of Gainey Capital in satisfaction of the loan or to receive full payment of the loan, plus interest from the date of advance of the funds at 18% per annum. Royal Mines views this acquisition positively, believes the mineral concessions have significant mineral reserves based on past exploration and geological reports, and has full confidence in the directors and officers of Gainey Capital and Golden Anvil to create additional value for their shareholders.
About Royal Mines and Minerals Corp.:
Royal Mines and Minerals Corp. is a minerals exploration and process-based technology company focused on the development of mining technology and projects in North America, and on the proficient extraction of precious metals. Our primary objectives are to 1) commercially extract and refine precious metals from specific ores, fly ash and other leachable assets, 2) use our lixiviation processes (Cholla and thiourea) to convert specific ore bodies and fly ash landfills into valuable assets, and 3) joint venture, acquire and develop mining projects in North America. We have not yet realized significant revenues from our primary objectives.
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. There is no assurance that the acquisition of Golden Anvil will be completed as contemplated or at all.
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.
To get free alerts on this and other similar stocks, please register here:
What is the StockGuru Spotlight?
Many companies covered in The StockGuru Spotlight have positive increases in both volume and share price. While this is not true in all cases, StockGuru strives to cover companies in The StockGuru Spotlight that are worth of our readers’ attention.
StockGuru looks for potential break-out candidates in The StockGuru Spotlight. Many of these companies have had recent news and appear to be getting the attention of investors. StockGuru does not typically feature companies in The StockGuru Spotlight that are compensating StockGuru for this coverage. There are times when StockGuru covers a stock in The StockGuru Spotlight that had previously compensated Stockguru. Where that is the case, a proper disclosure is included below. StockGuru and its partners, employees and writers never hold shares, short positions, warrants or any other current position in a stock featured in The StockGuru Spotlight.
To feature a company in The StockGuru Spotlight please contact the Publisher at firstname.lastname@example.org. If our reader is a key person for a publicly traded company, StockGuru can consider that company for either a StockGuru Spotlight or a StockGuru Profile. Please contact the StockGuru Publisher John Pentony at this email address: email@example.com.
Stockguru.com (“SG”) provides its members with the latest news, press releases, and trade alerts for all the companies highlighted on the site StockGuru.com. SG utilizes information believed to be reliable herein prepared all material. The information contained herein is not guaranteed by SG to be accurate, and should not be considered to be all-inclusive. The owner, publisher, editor and their associates are not responsible for errors and omissions. SG encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and SG makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies or the information contained herein. The companies that are discussed in this opinion have not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. SG is not a licensed broker, broker dealer, market maker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on http://www.Stockguru.com or mentioned herein.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected”, “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and SG undertakes no obligation to update such statements. StockGuru is occasionally compensated for coverage. When this is the case, SG clearly indicates this with a disclosure of all compensation received in the past and present. Additionally SG also discloses any anticipated compensation in the future. Compensation is typically in cash. Sometimes a company pays SG in restricted shares. Pentony Enterprise and its associated companies does not take free trading shares for any reason at anytime. StockGuru is not a registered investment adviser or a broker-dealer. StockGuru makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
John Pentony, Publisher, Stockguru.com
Tel: +1 469 252 3031