Business
Empress Royalty Executes Gold Stream on Galaxy Mine
VANCOUVER, BC / ACCESSWIRE / November 23, 2023 / Empress Royalty Corp. (TSXV:EMPR)(OTCQX:EMPYF) ...
About this update from Empress Royalty Corp
[{"type":"text","content":"Empress Royalty Executes Gold Stream on Galaxy MineVANCOUVER, BC / ACCESSWIRE / November 23, 2023 / Empress Royalty Corp. (TSXV:EMPR)(OTCQX:EMPYF) (\"Empress\" or the \"Company\") is pleased to announce the execution of an agreement for a US$5M gold stream (the \"Investment\") on the Galaxy gold mine (\"Galaxy\") in South Africa owned by Golconda Gold Ltd. (TSXV:GG)(OTCQX:GGOF) (\"Golconda\").\"We are excited to provide a gold stream financing to Golconda's Galaxy mine, which will support Golconda in expanding its production capacity,\" stated Alexandra Woodyer Sherron, CEO and President of Empress. \"The gold stream on the Galaxy mine will immediately increase Empress' revenue projections and expand our long-term revenue profile. With four producing assets in our portfolio generating significant revenue, we look forward to executing similar transactions on producing precious metal mines that will result in substantial returns for our shareholders.\"In addition, Nicholas Brodie, CEO of Golconda stated \"We are excited to partner with Empress who, through their due diligence, have understood the true potential of Galaxy. With the proceeds generated from the Investment, we will be able to further implement and execute on our expansion plans at the Galaxy mine.\"THE INVESTMENTEmpress has entered into a US$5M metal purchase and sale agreement (the \"Agreement\") with Galaxy Gold Reefs (Pty) Ltd., a subsidiary of Golconda, and Golconda and certain of its affiliates, for payable gold production from the Galaxy mine in South Africa. The Investment is based on 3.5% of the payable gold production from the Galaxy mine for an initial 8,000 payable ounces; thereafter, the percentage will reduce to 2.0% of the payable gold production until the earlier of: (i) 20,000 ounces having been paid to Empress; or (ii) 20 years after the first payment was made. The purchase price for the payable gold delivered pursuant to the Agreement is 20% of the gold spot price. The closing of the transaction and the funding of the Investment is subject to customary closing conditions including Empress' satisfactory completion of technical, legal, and financial due diligence which is expected to be completed in early 2024. It is anticipated that the Investment will be funded by Empress through a credit facility.THE GALAXY GOLD MINE(1)Golconda acquired the Galaxy m...