Empress Announces the Acquisition of One Percent of Pinos Gold and Silver Project
Empress acquired a one percent Net Smelter Return royalty on production from the Pinos gold and silver project owned by Candelaria Mining Corp.
FREMONT, CA: Empress Royalty acquires a one percent Net Smelter Return royalty on production from the Pinos gold and silver project owned by Candelaria Mining Corp. Empress and Accendo Banco announce Empress has completed its first near-term cash creating investment with the NSR royalty on Candelaria's Pinos project in Mexico. The company is happy to be part of Candelaria's transition from developer to producer. This is the foremost investment in Mexican royalty following the strategic alliance between Empress and Accendo Banco.
Empress completed the acquisition of a combined percent NSR royalty on Pinos for an aggregate consideration of 1,500,000 US dollars. The acquisition was a combination of a recently created 0.5 percent NSR royalty on the Pinos project from Candelaria and the purchase of an additional 0.5 percent NSR royalty on the Project from a royalty holder on similar terms and conditions. Empress' royalties produce a direct real property interest in the Project that shall continue in perpetuity and registered against the title.
The Pinos project is located in the high-grade historical gold and silver district of the Zacatecas mining belt in north-central Mexico. Zacatecas state, the second big gold producing district in the country after Sonora, is a stable, mining-friendly state that comprises Newmont Mining's Peñasquito mine and Capstone Mining's Cozamin mine. Pinos has good infrastructure with paved roads to the entry of the mine and electricity on-site.
Pinos has permits in-place for production and is being moved towards construction under its PEA and will begin constructing a 200 tonnes-per-day mining activity with a path to ramp-up to 400 tpd within two years of initial production. As the last step to funding construction, Candelaria reported it had closed a US$9.0 million medium-term loan facility with Accendo Banco, S.A. Funds advanced under the Facility will be utilized for financing construction of the Pinos project.