Empress Royalty Corp. (TSX-V:EMPR) (OTCQX:EMPYF) is pleased to announce it has closed and fully funded the previously announced US$5M gold stream on the Galaxy gold mine in South Africa owned by Golconda Gold Ltd. (TSX-V:GG) (OTCQX:GGOF).
 

“The Galaxy investment is our fourth revenue generating asset, immediately accretive to our revenue outlook,” stated Alexandra Woodyer Sherron, CEO & President of Empress Royalty.  “This funding facilitates the purchase of underground equipment and development to maximise mill throughput and drive production ounces higher with commensurate reduction in AISC for Galaxy.  Empress is aggressively focused on building the portfolio and deploying further capital into cashflow generating investments which is expected to result in another year of growth.”

THE INVESTMENT

As announced on November 23, 2023, Empress entered into a US$5M metal purchase and sale 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 Investment was funded by the Company’s Accordion Credit Facility with Nebari Gold Fund 1, LP and Nebari Natural Resources Credit Fund II, LP as announced on December 5, 2023.

In accordance with the terms of the Credit Facility, the Company issued 5M common share purchase warrants to Nebari.  Each Bonus Warrant is priced at $0.31 and is exercisable into one common share of the Company for a period of three years from the drawdown date.  The Bonus Warrants are subject to a four-month plus one day hold period.  The Credit Facility allows for the issuance of additional Bonus Warrants to Nebari upon further draws on the Credit Facility equal to 500,000 (or the pro rata amount) for every US$5M drawn thereafter.  The issuance of any further Bonus Warrants to Nebari under the Credit Facility is subject to the limitations of the policies of the TSX Venture Exchange and subject to Exchange review prior to issuance.

ABOUT GOLCONDA GOLD

Golconda Gold is an un-hedged gold producer and explorer with mining operations and exploration tenements in South Africa and New Mexico. Golconda Gold is a public company, and its shares are quoted on the TSX Venture Exchange and the OTCQB.  Golconda Gold’s management team is comprised of senior mining professionals with extensive experience in managing mining and processing operations and large-scale exploration programmes. It is committed to operating at world-class standards, focused on the safety of its employees, respecting the environment, and contributing to the communities in which it operates.

ABOUT EMPRESS ROYALTY CORP.

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 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 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.