Aftermath Silver Makes Early US$2.9-million Property Payment to EMX Royalty Corp for Berenguela Project Ag-Cu-Mn, Peru

Rhea-AI Summary

Aftermath Silver (AAGFF) has made an early US$2.9-million property payment to EMX Royalty Corp for its Berenguela silver-copper-manganese project in Peru, 5 months ahead of the May 2025 due date. This payment is part of the company's option to acquire 100% interest in the project through agreements with SSR Mining and EMX Royalty.

The remaining payments to EMX include US$3.25-million due in November 2026 and a sliding-scale NSR royalty on mineral production: 1.0% when silver prices are up to US$25 per ounce, increasing to 1.25% when silver exceeds US$25 per ounce and copper is above US$2 per pound.

The company is currently focusing on completing the Berenguela PEA and revising the mineral resource estimate, incorporating results from recent infill drilling.

Positive

• Early payment of US$2.9M property payment, negotiated down from original amount
• Progress towards 100% project acquisition
• Ongoing PEA development and mineral resource estimate revision

Negative

• Remaining payment obligation of US$3.25M due in November 2026
• Future NSR royalty obligations on production

Vancouver, British Columbia--(Newsfile Corp. - January 7, 2025) - Aftermath Silver Ltd. (TSXV: AAG) (OTCQX: AAGFF) (the "Company" or "Aftermath Silver") is pleased to provide an update on its Berenguela silver-copper-manganese project located in the Department of Puno, in southern central Peru (the "Project" or "Berenguela").

The Company has an option (the "Option") to acquire a 100% interest in the Project through binding agreements with SSR Mining Inc. ("SSR") (see AAG news release dated October 21, 2020 for further details regarding the original option with SSR) and EMX Royalty Corporation ("EMX") following EMX's assumption of certain interests contained in Aftermath's agreement with SSR.

The Company has made the third property payment 5 months ahead of the May 2025 due date. In return, EMX agreed to reduce the amount due to US$2.9-million.

Ralph Rushton, President and CEO of Aftermath commented: "Aftermath would once again like to thank David Cole and the team at EMX for their flexibility in agreeing to adjust the terms of the Berenguela agreement. With the latest payment made, our focus now is on completion of the Berenguela PEA. We will also be revising the mineral resource estimate for Berenguela incorporating the results of the latest round of in fill drilling."

EMX's interest in Berenguela resulted from EMX's acquisition of a portfolio of royalty interests and payments from SSR and certain of its subsidiaries (see EMX news releases dated July 29 and October 21, 2021). Aftermath Silver's payment obligations, which arise pursuant to a definitive acquisition agreement, originally executed with SSR totalling US$13-million and other consideration to acquire a 100% interest in the Project, are summarized below (as now amended). The following represent the remaining payments to EMX;

• US$3-million cash to be paid on the May 15, 2025 (Paid);
• US$3.25-million cash to be paid on the sixth anniversary of the initial closing date (i.e. November 2026);
• A sliding-scale NSR royalty on all mineral production from the Project for the life of mine commencing at the declaration of commercial production, and based on the following:
  • 1.0% NSR royalty on all mineral production when the silver market price is up to and including US$25 per ounce;
  • 1.25% NSR royalty on all mineral production when the silver market price is over US$25 per ounce and when the copper market price is above US$2 per pound.

Qualified person

Michael Parker, a fellow of the AusIMM and a non-independent director of Aftermath, is a non-independent qualified person, as defined by National Instrument 43-101. Mr. Parker has reviewed the technical content of this news release and consents to the information provided in the form and context in which it appears.

About EMX Royalty Corp.

EMX is a precious and base metals royalty company. EMX's investors are provided with discovery, development, and commodity price optionality, while limiting exposure to risks inherent to operating companies. The Company's common shares are listed on the NYSE American Exchange and TSX Venture Exchange under the symbol "EMX". Please seewww.EMXroyalty.com for more information.'

About Aftermath Silver Ltd.

Aftermath Silver is a leading Canadian junior exploration company focused on silver and aims to deliver shareholder value through the discovery, acquisition and development of quality silver projects in stable jurisdictions. Aftermath has developed a pipeline of projects at various stages of advancement. The company's projects have been selected based on growth and development potential.

ON BEHALF OF THE BOARD OF DIRECTORS
"Ralph Rushton"
Ralph Rushton
CEO and Director
604-484-7855

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/236251

FAQ

What is the latest payment made by Aftermath Silver (AAGFF) for the Berenguela project?

Aftermath Silver made an early payment of US$2.9-million to EMX Royalty Corp for the Berenguela project, 5 months ahead of the original May 2025 due date.

What are the remaining payment obligations for AAGFF on the Berenguela project?

AAGFF must pay US$3.25-million in November 2026, plus a sliding-scale NSR royalty on mineral production ranging from 1.0% to 1.25% based on silver and copper prices.

What is the NSR royalty structure for AAGFF's Berenguela project?

The NSR royalty is 1.0% when silver prices are up to US$25/oz, increasing to 1.25% when silver exceeds US$25/oz and copper is above US$2/lb.

What are the next development steps for AAGFF's Berenguela project in 2025?

AAGFF is focusing on completing the Berenguela PEA and revising the mineral resource estimate, incorporating results from recent infill drilling.