Empress Royalty Corp (CVE:EMPR) (OTCQB:EMPYF) told shareholders Monday that the company is nearing a deal to acquire a US$5 million silver stream on the Tahuehueto project in Mexico.
The stream on Tahuehueto, a silver project owned by Telson Mining Corp (CVE:TSN) (OTCMKTS:SOHFF) (FRA:TSGN), will cover 100% of the first 1.25 million payable ounces and thereafter drop to 20% of payable silver production.
In a statement, Empress said that its team is “optimistic” that a non-binding term sheet already signed will be finalized in the coming weeks.
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Tahuehueto is slated to begin production in late 2021, ramping up to full production in 2022.
The Tahuehueto stream will add to the 15 investments owned by Vancouver-based Empress, a recently-listed precious metals royalty and streaming company that provides unique financing solutions for mining companies. The group has strategic partnerships with Endeavour Financial in London, Terra Capital in Australia and Accendo Banco in Mexico.
"We are delighted to provide this update on the progress at Empress," CEO Alexandra Woodyer Sherron said in a statement Monday.
"Since listing on the TSXV two months ago, Empress has continued to create and identify investment opportunities on cash-generating assets and develop its unique business strategy in the royalty and streaming sector."
The royalty company also told investors that it recently struck deals with two gold producers, one in South America and another in Africa. The South American deal involves a potential investment of US$10 million in a currently operating mine, which will permit the producer to expand production by more than 30%.
The second deal with an African producer involves a potential US$2.5 million investment that will allow the operator to double existing production.
Both opportunities should result in immediate revenue for Empress, the company told investors.
Empress has a pipeline of US$75 million in potential producing and near-term production opportunities.
Contact Angela at angela@proactiveinvestors.com
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