Editor's PickMarket News

Empress Royalty makes final US$3M payment for its silver stream deal on the Tahuehueto project in Mexico

Empress Royalty Corp said it has made the final US$3 million payment as part of a previously-announced US$5 million silver stream agreement on the Tahuehueto project in Mexico owned by Altaley Mining Corporation (TSX-V:ATLY), previously known as Telson Mining Corporation. Empress will receive 100% of the payable silver production from Tahuehueto for the first 1,250,000 payable ounces, after which the percentage will be reduced to 20% to a maximum of 10 years from first production after which the stream terminates. “The completion of the US$5M silver stream is an important milestone for Empress as we continue to deliver on our plans to build a diversified portfolio of gold and silver investments,” Empress CEO Alexandra Woodyer Sherron said in a statement. READ: Research Capital starts coverage on Empress Royalty with a Buy rating and $0.70 price target “We are pleased to be working closely with Altaley and our strategic partners to bring this quality asset into production,” Sherron added. Altaley announced recently that its Tahuehueto project is about 60% constructed, with initial production forecast for late 2021 and full scale production forecast for early 2022. Empress’ silver stream agreement is part of a US$25 million full financing package provided to Altaley by Empress and its strategic partners Accendo Banco and Endeavour Financial, which includes a US$8 million equity private placement by Altaley that closed on March 30 and a US$12 million debt facility from Accendo.     A 2017 pre-feasibility study estimated that the Tahuehueto project has a 21-year mine life at a production rate of 550 tonnes per day, although Altaley has elected to build a 1,000 tonnes per day mining operation to achieve improved economics. Empress is a precious metal royalty company with a portfolio of 14 royalties, with the most advanced being a 1% net smelter return royalty covering the Pinos Gold-Silver Project in Mexico. Contact Sean at sean@proactiveinvestors.com