Empress Closes and Fully Funds Tahuehueto Silver Stream
Empress Royalty Corp. has completed a US$5M silver stream agreement with Altaley Mining for the Tahuehueto project in Mexico, closing the final payment of US$3M. This stream covers 100% of the first 1,250,000 ounces of payable silver production, stepping down to 20% thereafter for up to ten years. The project, approximately 60% constructed, is expected to commence initial production in late 2021 and full-scale operations in early 2022. This agreement is part of a larger US$25M financing solution for Altaley, which includes equity placements and debt facilities.
- Completion of the US$5M silver stream agreement enhances Empress' investment portfolio.
- Tahuehueto project construction is 60% complete, with initial production forecast for late 2021.
- The agreement supports a US$25M full financing solution for Altaley, indicating strong partnership prospects.
- None.
VANCOUVER, BC / ACCESSWIRE / July 22, 2021 / Empress Royalty Corp. (TSXV:EMPR)(OTCQB:EMPYF) ("Empress" or the "Company") is pleased to announce it has closed and funded the final payment of US
"The completion of the US
THE INVESTMENT & TRANSACTION
As announced on April 16, 2021 and April 29, 2021, Empress executed and has now fully funded the US
Altaley has announced that its Tahuehueto project is approximately
The Stream is part of a US
THE PROJECT
Tahuehueto is located in the mining friendly jurisdiction of Durango, Mexico. It is a typical epithermal polymetallic mineral deposit in this part of Mexico, with metals consisting of gold silver, zinc, copper and lead. Based on the PFS completed in 2017, the project had a 21 year life-of-mine at a production rate of 550 tonnes per day, however, Altaley has elected to build a 1,000 tonnes per day mining operation to achieve improved economics.
Image 1 . Mill Construction at Tahuehueto
The mine is fully permitted, has all social licenses to operate, including with the local Ejido, has offtake agreements in place with Trafigura, and has already produced a saleable concentrate, processing over 42,000 tonnes of ore on a toll mill basis during 2018 - 2019. This confirmed the metallurgy as straight forward, with no need for fine or ultra-fine grinding, no refractory ore and the process uses standard "off the shelf" technology realizing excellent recoveries of payable metals.
TAHUEHUETO PROJECT - NI 43-101 RESOURCE and reserve
(Source: Metal Mining Consultants Inc. - Pre-Feasibility Study - January 2017)
Tahuehueto Project Mineral Reserve Estimate | |||||||||||
Classification | Tonnes | Au/t | Oz Au | Ag/t | Oz Ag | Cu% | Lbs. Cu | Pb% | Lbs. Pb | Zn% | Lbs Zn |
X1000 | g | X1000 | g | X1000 | X 1000 | X1000 | X1000 | ||||
Probable Reserves | 3,264 | 3.40 | 356 | 41.80 | 4,387 | 0.35 | 25,028 | 1.19 | 85,762 | 2.24 | 161,314 |
Note : Mineral Reserves were defined as mineralized material that occurred within the stope shapes that were based on and NSR value of
Canadian Institute of Mining, Metallurgy and Petroleum standards were followed in the estimation of the Mineral Reserves. Mineral Reserves were estimated using metal price forecasts of
Tahuehueto Measured and Indicated Resources | |||||||||||
Classification | Tonnes | Au/t | Oz Au | Ag/t | Oz Ag | Cu% | Lbs. Cu | Pb% | Lbs. Pb | Zn% | Lbs Zn |
X1000 | g | X1000 | g | X1000 | X 1000 | X1000 | X1000 | ||||
Measured | 2,771 | 2.77 | 247 | 44.70 | 3,982 | 0.31 | 18,914 | 1.27 | 77,827 | 2.29 | 139,821 |
Indicated | 3,343 | 2.23 | 240 | 41.26 | 4,435 | 0.30 | 22,466 | 1.15 | 84,455 | 2.04 | 155,687 |
Total M&I | 6,114 | 2.48 | 487 | 42.82 | 8,417 | 0.31 | 41,380 | 1.20 | 162,282 | 2.15 | 295,508 |
Tahuehueto Inferred Resources | |||||||||||
Classification | Tonnes | Au/t | Oz Au | Ag/t | Oz Ag | Cu% | Lbs. Cu | Pb% | Lbs. Pb | Zn% | Lbs Zn |
X1000 | g | X1000 | g | X1000 | X 1000 | X1000 | X1000 | ||||
Inferred | 3,501 | 1.31 | 147 | 37.59 | 4,230 | 0.27 | 20,469 | 1.34 | 103,080 | 2.44 | 188,409 |
Note: The above mineral resources have been calculated using a cut-off of 2.5 g/t Au Equivalent. These resource numbers are preliminary in nature. They include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
Image 2. Mill Construction at Tahuehueto
For further information, please see the Altaley Mining Corporate website for more information (www.altaleymining.com)
Richard Mazur, P.Geo., a consultant to Empress Royalty and Qualified Person under National Instrument 43-101 has reviewed and approved the contents of this news release.
ABOUT ALTALEY MINING CORPORATION
Altaley's Tahuehueto mining project is located in Durango State, Mexico and construction has been advanced to an estimated
ABOUT EMPRESS ROYALTY CORP.
Empress is a new royalty and streaming creation company focused on providing investors with a diversified portfolio of gold and silver investments. Empress has a current portfolio of 16 investments and is actively investing in mining companies with development and production stage projects who require additional non-dilutive capital. The Company has strategic partnerships with Endeavour Financial, Terra Capital, and Accendo which allow Empress to not only access global investment opportunities but also bring unique mining finance expertise, deal structuring and access to capital markets. Empress is looking forward to continuously creating value for its shareholders through the proven royalty and streaming models.
ON BEHALF OF EMPRESS ROYALTY CORP.
Per: Alexandra Woodyer Sherron, CEO and President
For further information, please visit our website at www.empressroyalty.com or contact Kaitlin Taylor, Investor Communications, by email at info@empressroyalty.com or by phone at +1.604.331.2080.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains statements about Empress' expectations regarding the Stream and the Tahuehueto mining project which are forward-looking in nature and, as a result, are subject to certain risks and uncertainties. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "believes", "anticipates", "aims to", "plans to" or "intends to" or variations of such words and phrases or statements that certain actions, events or results "will" occur. Although Empress believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include Empress not being successful in identifying suitable investment opportunities, being able to successfully complete technical, financial or legal diligence in respect of investment opportunities it has identified, or being able to negotiate and enter into binding agreements for royalty or stream deals with potential counterparties. Readers are referred to the risk factors and contained in Empress' most recent annual information form for a description of the principal risks affecting Empress, its business and its securities. The forward-looking statements contained in this news release are made as of the date hereof, and Empress undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law. Readers should not place undue reliance on forward-looking statements or information.
SOURCE: Empress Royalty Corp.
View source version on accesswire.com:
https://www.accesswire.com/656738/Empress-Closes-and-Fully-Funds-Tahuehueto-Silver-Stream
FAQ
What is the significance of Empress Royalty's silver stream agreement on the Tahuehueto project?
When is initial production expected to start at the Tahuehueto project?
What percentage of silver production does Empress Royalty receive from the Tahuehueto project?