Empress Royalty Corp (TSX-V:EMPR, OTCQX:EMPYF) said its Tahuehueto Silver Stream has reached production of 500 tonnes per day (tpd) on time and on budget.
"It is extremely rewarding to see our investments and mining company partners continue to deliver on milestones, improve operations and production targets," Alexandra Woodyer Sherron, CEO and president of Empress Royalty, said in a statement.
"Tahuehueto reaching 500 tpd is a significant accomplishment that not only strengthens our cash-flow but also increases our direct exposure to silver. As they ramp up to full commercial production, we look forward to substantial revenue growth over the next quarters.”
The company said that in late June, Luca Mining Corp (TSX-V:LUCA, OTCQX:LUCMF) announced the 500 tpd milestone, adding that the installed capacity is expected to generate positive cash flow at current metal prices. Luca also announced the successful closing of an oversubscribed non-brokered private placement for a total of C$24,896,551.42. The two milestones mean that Luca is fully funded to achieve commercial production of 1,000 tpd by the end of 2023.
Empress said it is expecting a US$150,000 payment from Luca by June 30, 2023 and resumption of the silver stream in July 2023.
Manica mine in Mozambique
“Operational performance, ore grades, and throughputs at Manica have been steadily advancing, and production levels have consistently met or exceeded internal guidance, resulting in steady and increasing royalty payments,” Woodyer Sherron added.
Empress said that in June 2023, it completed a site visit of the Manica mine in Mozambique operated by Mutapa Mining & Processing Limitada (MMP) and was impressed with the site team, which is reflected in the operational ramp-up and now the site operating at near steady-state operations.
“On July 12, 2023, Empress amended the Manica Royalty Agreement to reflect Manica royalty payor MMP successfully obtaining its own gold export licence. This has allowed Empress and MMP to significantly simplify the mechanics of how Empress receives its Manica royalty payments and the monthly reporting of sales and royalty payment information to Empress,” the company said.
The company also said it is progressing on two potential investments which have exclusivity agreements in place, adding that both opportunities are now in advanced stages of due diligence.
Empress is a global royalty and streaming creation company providing investors with a diversified portfolio of gold and silver investments.
Contact the author at jon.hopkins@proactiveinvestors.com