Empress currently has a portfolio of 15 precious metal royalties and plans to create further royalty and streaming investments. Empress will look to invest in mining companies with development and production-stage projects requiring additional non-dilutive capital to either get the project into production or expand their mine.
Basically, a royalty enables Empress to receive payment based on a percentage of gold or silver produced at a mine in revenues or profits generated from the sale of those minerals in exchange for an initial investment by Empress. A metal stream provides Empress the right to purchase a portion of one or more metals produced from a mine in exchange for non-dilutive capital at an attractive price determined for the life of the transaction. Empress then realizes the difference between delivery price and spot price.
Empress has developed three strategic relationships with Endeavour Financial in the UK, Accendo Banco in Mexico, and Terra Capital in Australia to expedite the execution of its business strategy. These key relationships are a major differentiator from competitors in a crowded royalty space.
Endeavour Financial, a leading global mining finance investment banking firm in London, UK, has partnered with Empress Royalty to assist in identifying, structuring and negotiating transactions for possible investment opportunities.
Accendo Banco SA in Mexico is an active investor and financier for the Mexican mining industry that provides Empress with exclusive access to Mexican royalty and streaming investment opportunities. This relationship also allows Empress to offer a balanced approach for project funding to its mining company partners in Mexico.
Empress’s third strategic partnership is with Australian-based Terra Capital, one of the best boutique fund managers in the country. Terra provides access to the Australian markets as well as global investment opportunities.
After a spinout from Alto Ventures, Empress initially acquired 13 gold royalties that included exploration-stage properties held by Osisko Mining, Big Ridge Gold, Wesdome Mines and Sanatana Resources with net smelter royalties ranging from 0.5% to 1.5%.
On November 24, 2020, Empress completed the acquisition of a combined 1% NSR royalty on Pinos for an aggregate consideration of US$1,500,000. The acquisition was a combination of a newly created 0.5% NSR royalty from Candelaria Mining Corp. for consideration of US$750,000 and the purchase of an additional 0.5% NSR royalty from an existing royalty holder on the same terms and conditions.
As the final step to funding construction, Candelaria Mining closed a US$9.0 million medium term loan facility with Accendo Banco. Funds advanced under the facility will be used for financing construction of the 100%-owned Pinos gold and silver mine in Zacatecas State, Mexico. The mine is expected to produce about 13,000 ounces of gold/year starting in Q1 2022 at 200 tpd and ramping up to 400 tpd within two years.
Empress recently completed a gold royalty investment of US$2 million for a 2.25% royalty on Manica which is a near term producing gold project in Mozambique, Africa. It is expected that the project will be in production later this year and generating cash flow.
Empress currently has exclusivity letters signed on additional investments. This includes a potential silver stream investment of US$5 million on a project in Mexico. Empress would be part of a full financing package to allow mine construction of a world-class asset to be completed. Production is scheduled to commence within 12 months after funding.
Additionally, Empress is currently evaluating over 15 precious metal projects representing investments of over US$75 million. The company is seeking opportunities globally with individual investments ranging from US$1 to US$10 million.
Alexandra Woodyer Sherron, CEO and President, has over 20 years of mining experience and has completed over US$1.5 billion in mining finance transactions throughout her Investment Banking career. The Empress management team has over 250 years’ experience in capital markets, mining engineering and mineral exploration with $6 billion in completed transactions.
Empress is building a portfolio of royalty and streaming investments through the creation of unique financing solutions for its partner mining companies. Focused globally and only on precious metal investments, the company is creating value with its proven business strategy with the intention to pay dividends to its shareholders. Empress Royalty has cash and cash equivalents totalling approximately C$7.5 million and no debt. The company has 71,769,385 shares outstanding with no options or warrants.