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Empress Royalty receives first payable silver ounces from the silver stream agreement on the Tahuehueto Mine in Mexico

Published: 07:35 18 Jul 2022 EDT

Silver bars
The Tahuehueto Mine, located in Durango, Mexico, is 100% owned and operated by Altaley Mining Corporation

Empress Royalty Corp (TSX-V:EMPR, OTCQB:EMPYF) said it has received the first payable silver ounces from the silver stream agreement on the Tahuehueto Mine, located in Durango, Mexico, and 100% owned and operated by Altaley Mining Corporation (TSX-V:ATLY).

"I am excited to announce Empress has received its first payment of silver ounces from the Tahuehueto mine. It's only been 12 months since the Tahuehueto silver stream was completed and this is a major milestone to see a development asset move forward to generate revenue for the Company", said Alexandra Woodyer Sherron, CEO and president of Empress in a statement.

"Tahuehueto is an exceptional asset which is expected to generate significant revenue for Empress. It gives Empress direct exposure to silver and combined with our low G&A provides an effective hedge against inflation pressures as seen in other industries. Empress continues to build a strong portfolio of revenue-generating gold and silver royalties and streams and Tahuehueto demonstrates our ability to deliver value to our shareholders," she added.

READ: Empress Royalty's Tahuehueto silver stream initiates pre-production

On April 16, 2021, Empress executed the US$5 million silver stream agreement with Altaley to purchase 100% of the payable silver production from Tahuehueto for the first 1,250,000 payable silver ounces. Thereafter, the percentage will step down to 20% of the payable silver production up to a maximum of 10 years. Empress will purchase the silver at 20% of spot price.

Tahuehueto is a typical epithermal polymetallic mineral deposit in this part of Mexico, with metals consisting of gold, silver, zinc, copper and lead. The mine is fully permitted, has all social and environmental licenses to operate, and has offtake agreements in place.

On April 26, 2022, Altaley filed an updated technical report, including a Preliminary Feasibility Study (PFS) for Tahuehueto which disclosed a significant increase of approximately 30% to the overall economics of the project. Altaley expects to produce 2,166 ounces (oz) per month of gold and 37,829 oz/month of silver, of which 100% of the silver is subject to the above terms of the stream. 

Significant opportunities exist to expand the Projects Mineral Resources and Reserves base with near mine and regional exploration. Altaley plans to aggressively pursue exploration as soon as free cash flows allow or alternative funding is secured.

Empress is a global royalty and streaming creation company providing investors with a diversified portfolio of gold and silver investments. Since listing in December 2020, Empress 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. 

The company has strategic partnerships with Endeavour Financial and Terra Capital (AIM:TCA) 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 has said it is looking forward to continuously creating value for its shareholders through the proven royalty and streaming models.

Contact the author at jon.hopkins@proactiveinvestors.com

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