Empress Royalty Corp (TSX-V:EMPR, OTCQB:EMPYF, FRA:53G) said it will receive immediate additional revenue as it lifted its gold stream agreement on the Sierra Antapite producing gold mine in Peru to 3.375% from 2.25% previously.
As reported in late July this year, Empress struck a US$10 million gold stream agreement on the payable production from the mine at 20% of the spot price.
The company initially funded US$5 million in exchange for receiving an immediate stream percentage of 2.25% and retained the right to fund a further US$5 million for the remaining 2.25%.
Empress Royalty and the owner of the mine, Sierra Antapite, have now agreed that the stream may be funded in three tranches instead of two, so Empress is paying US$2.5 million on September 30, 2021, such that it now receives 3.375% of all gold production.
READ: Empress Royalty receives first gold streaming revenue from the Sierra Antapite mine in Peru
"The result of increasing the stream from 2.25% to 3.375% of the Sierra Antapite gold production will provide immediate additional revenue into Empress," said Alexandra Woodyer Sherron, CEO of Empress Royalty in a statement.
"With the increase in revenue combined with our development stage projects advancing on schedule, we are forecasting significant revenue next year. We continue to build the fundamentals of our business with a diversified portfolio and a robust pipeline creating value for our shareholders."
Also in the statement, Empress revealed it was no longer pursuing discussions with Accendo Banco over potential debt financing and, instead, was in talks with alternative financial groups to provide a debt facility on terms substantially similar terms to those it was negotiating with Accendo Banco.
The company says it is 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. It invests in mining firms with development and production stage projects, which require additional non-dilutive capital.
Contact the author at giles@proactiveinvestors.com