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Barrick leaves Royal Road

Gold major Barrick Gold (TSX: ABX) has sold its 10.7% stake in explorer Royal Road Minerals (TSXV: RYR) for about C$4.3 million (US$3.3 million).
Barrick leaves Royal Road Barrick leaves Royal Road Barrick leaves Royal Road Barrick leaves Royal Road Barrick leaves Royal Road

Royal Road’s Los Andes copper-gold project in Nicaragua

Staff reporter

Barrick said it sold the shares for 19c each in a pre-arranged trade, "in order to monetise its investment in Royal Road".

It had increased its holding to about 12.5% at 16c per share in January 2018.

Fellow gold producer Agnico Eagle Mines (TSX: AEM) had doubled its stake in Royal Road to 19.9% in May, as part of an $8 million raising at 20c per share.

Royal Road is exploring for copper and gold in Nicaragua and Colombia and yesterday provided an exploration update for its recently-acquired Guintar-Niverengo-Margaritas gold project in Colombia, which was previously owned by AngloGold Ashanti.

President and CEO Dr Tim Coughlin said the company was excited by the potential at GNM and had started re-logging and re-interpreting geology and geophysics and was planning follow-up drilling next quarter.

The company had last week reported highlights including 49m at 2.8g/t gold from first drilling at its Luna Roja project in Nicaragua. 

Royal Road had $2.4 million (US$1.8 million) in cash and equivalents at June 30.

Its shares lost 1c to 20c yesterday but are up 185.7% year-to-date.

It is capitalised at $42.9 million (US$32.6 million).