Silver X Mining Corp (TSX-V:AGX, OTC:WRPSF) announced that it has restructured its royalty agreement with Maverix Metals Inc (TSX:MMX), a subsidiary of Triple Flag Precious Metals (TSX:TFPM), to expand the royalty to cover the entire Tangana Mining Unit at the Nueva Recuperada silver project in Peru.
The company said the previous 3% net smelter royalty, which only covered a part of the mine, will be replaced by a 3% net smelter royalty that spans the entire mine.
Triple Flag will also be granted both a Right of First Refusal and a Right of First Offer over future royalty or stream-like financings.
Silver X said it will receive total consideration of US$2.42 million from Triple Flag made up of $1.67 million in cash and an offset of amounts to be paid under the royalty agreement to the year-end.
"This partnership with Triple Flag represents a positive shift in our royalty strategy, positioning Silver X for future growth," Silver X CEO José M. García said in a statement.
"Beyond the financial flexibility provided by the agreement, this partnership underscores Triple Flag's confidence in our asset and our team."
Silver X Mining is a rapidly expanding silver developer and producer in Central Peru. It owns the 20,000-plus hectare Nueva Recuperada Silver District in Central Peru and produces silver, gold, lead, and zinc from the district's Tangana Mining Unit.
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