Royal Mines And Minerals Corp. (OTCPK:RYMM) announced that it has entered into a convertible loan agreement for gross proceeds up to $100,000 with new investor Bruce Matheson on April 16, 2014. The loan bears an interest rate of 6% per annum, compounded annually and would mature on April 1, 2015. The loan is evidenced by a promissory note. At any time prior to the maturity date, the investor may convert the loan into units of the company at a price of $0.05 per unit in exchange for any portion of the principal outstanding. Each unit consists of one share of the company's common stock and one warrant. Each warrant entitles the holder to purchase one common share of the company at a price of $0.10 per share for a period of two years from the date of issuance. The principal that converted into units doesn't accrue any interest after conversation.

At any time prior to the maturity date, if the loan amount equals to $250,000 and the investor has not exercised the unit conversion option, the investor may elect to forgive the principal, including any interest accrued on the principal, in exchange for the option to form a joint venture with the company for the purpose of constructing and operating a processing plant at a new facility. If the joint venture option is exercised, would involve the company and the investor forming a limited liability company to operate the joint venture and ownership of limited liability company would be split equally between the company and the investor. In addition, the investor would advance $250,000 to limited liability company to fund the initial construction and operation costs of the joint venture. The company intended to raise $250,000 in the transaction.

On April 16, 2014, Royal Mines And Minerals Corp. closed the transaction.