The royalty agreement will pay Empress 2.25% of the revenue from gold sales until 95,000 ounces have been sold, in which case it will increase to 0.75%.
Empress Royalty Corp () () announced that it has closed and fully funded the C $ 2 million purchase of a 2.25% royalty on the Manica hard rock gold project in Mozambique, operated by Mutapa Mining & Processing LDA (MMP).
The royalty agreement, originally announced in February, will pay Empress 2.25% of revenue from gold sales until 95,000 ounces (oz) have been sold. Then the royalty percentage will decrease to 0.75%, the company said.
Manica is located in the Odzi-Mutare-Manica greenstone belt and includes several deposits on the 3990C mining concession license of ‘s () (FRA: R9XN), which includes four deposits. The main deposit, Fair Bride, has a SAMREC compliant resource statement that Empress is currently updating to meet NI 43-101 requirements.
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MMP and Xtract have entered into a collaboration and profit-sharing agreement, under which MMP will build, finance and operate a carbon leach plant to process ore mined from the Xtract concession, Empress told shareholders.
“The royalty on the Manica gold project marks an important milestone for Empress,” CEO Alexandra Woodyer Sherron said in a statement. “Once MMP has completed construction, Manica is expected to be our first income-generating African investment. The successful closing and funding of this royalty demonstrates Empress’s commitment to creating new royalties to help bring projects into production.
The royalty is secured by a first ranking security interest in certain assets of MMP, the company said.
Vancouver-based Empress has a portfolio of 15 gold royalties and is actively focused on finding industrial partners with development and production projects, which require additional non-dilutive capital.
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