Empress Royalty Corp (CVE:EMPR ) (OTCQB:EMPYF) (FRA:53G) has funded the initial US$2 million payment of the US$5 million silver stream agreement on the Tahuehueto project in Mexico, which is owned by Telson Mining Corporation (CVE:TSN) (OTCMKTS:SOHFF) (FRA:TSGN).
Empress on April 16 executed the Stream agreement on production of 100% of the payable silver production from Tahuehueto for the first 1,250,000 payable ounces. Thereafter, the percentage will step-down to 20% of the payable silver production to a maximum of 10 years from the first production, after which, the Stream terminates.
Empress said The Stream is part of a US$25 million full-financing solution being provided to Telson by Empress and its strategic partners, Accendo Banco and Endeavour Financial.
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The company said the US$25 million financing included a Telson US$8 million equity private placement, which closed on March 30, a US$5 million silver stream created by Empress, and a US$12 million debt facility from Accendo.
With the first tranche initial payment of the Stream completed, the remaining US$3 million second tranche will be funded on the closing of the Accendo debt facility and the restructuring of existing loans, Empress added.
Also, Telson has informed Empress that documentation for the Accendo Banco loan is progressing well and anticipates closing in May 2021.
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