Empress Royalty Corp. (TSX-V:EMPR, OTCQB:EMPYF) has entered into an agreement with Accendo Banco SA Institución de Banca Múltiple for a secured medium-term bridge loan facility for US$5.2 million.
"The Facility, in combination with our projected revenue, will expand Empress Royalty's capacity to further grow our precious metal portfolio," said Empress Royalty CEO Alexandra Woodyer Sherron in a statement.
"This transaction also highlights the unique relationships we have with our strategic partners and we would like to thank Accendo Banco for their continued support and belief in our long term business strategy."
READ: Empress Royalty receives first gold streaming revenue from the Sierra Antapite mine in Peru
The company said the proceeds from the facility will be used to finance the second tranche of its Sierra Antapite stream acquisition and for general and working capital.
Amounts borrowed under the facility will bear interest at the rate of 11% per annum and the facility will be secured via a pledge over the Altaley Mining stream held by Empress Royalty and potentially by other security.
In connection with the facility, Empress said Accendo will be paid an arrangement and origination fee of US$156,000, will be entitled to reimbursement of its expenses, and will be issued 6,500,000 share purchase warrants to purchase common shares at an exercise price of C$0.40 each for a two-year term from the date of closing.
If amounts borrowed under the facility are repaid before one year, the term of the warrants will be reduced on a pro-rata basis to one year in accordance with the policies of the TSX Venture Exchange.
The facility is subject to the satisfactory completion of due diligence by Accendo, the negotiation of definitive agreements, receipt of board approvals from Accendo and Empress Royalty and receipt of TSX Venture Exchange approval.
Empress is a new royalty and streaming creation company focused on providing investors with a diversified portfolio of gold and silver investments. Since publicly listing in December 2020, Empress Royalty has built a portfolio of 17 precious metal investments and is actively investing in mining companies with development and production stage projects who require additional non-dilutive capital.
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