Empress Acquires First Near- Term Cash Producing Royalty ON Candelaria’S Mexican Pinos Project
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NEWS RELEASE | NOVEMBER 2 5, 2020 | VANCOUVER , BC
EMPRESS ACQUIRES FIRST NEAR- TERM CASH
PRODUCING ROYALTY ON CANDELARIA’S MEXICAN
PINOS PROJECT
Empress Royalty Corp. (“Empress” or the “Company”) is pleased to announce it has acquired a
1% Net Smelter Return (“NSR”) royalty on production from the Pinos g old and silver project
(“Pinos” or “the Project”) owned by Candelaria Mining Corp. (“Candelaria”) (TSXV:CAND).
“We are pleased to announce Empress has completed its first near -term cash producing
investment with the NSR r oyalty on Candelaria’s Pinos project in Mexico,” stated Alexandra
Woodyer Sherron, CEO and President of Empress. “We are delighted to be part of Candelaria’s
transition from developer to producer. This is the first investment in a Mexican royalty which was
originated following the strategic alliance between Empress and Accendo Banco.”
THE INVESTMENT & TRANSACTION
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 on the Pinos project from Candelaria for consideration of
US$750,000 and the purchase of an additional 0.5% NSR royalty on the Project from an existing
royalty holder on the same terms and conditions. Empress’ royalties create a direct real property
interest in the Project, that shall continue in perpetuity and registered against title.
THE PROJECT
The Pinos project, 100% owned by Candelaria, is located in the high -grade historical gold and
silver district of the Zacatecas mining belt in north-central Mexico, just 67 kilometers northwest
of San Luis Potosi. Zacatecas state, the second largest gold producing district in the country after
Sonora, is a stable, mining -friendly state that includes Newmont Mining’s Peñasquito mine and
Capstone Mining’s Cozamin mine. Pinos has excellent infrastructure with paved roads to the
entry of the mine and electricity on-site.
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The Pinos project consists of 29 concessions comprising 3,816 hectare s which is roughly 17
kilometers worth of veins containing gold and silver. The veins have been mined historically to a
depth of only 180 meters, due to reaching the w ater table, but mineralization has been shown
to continue at depth.
The Pinos mining district dates back to the 17th century. It was one of two bonanza gold districts
discovered by the Spanish. Towards the end of the 19th century, Cornish miners revived the
district and continued mining throughout the Dorada or “Golden” era. Zacatecana Mining
Company and Pachuca Mining Company then took over the project and operated in the district
between 1920 and 1940.
Historical records indicate over 800,000 ounces of gold have been produced from the Pinos
district with average grades of 30 to 50 gold g/t from 33 shafts located throughout the district.
Candelaria currently has Indicated resource of 175,697 tonnes at a grade of 4.7 grams per tonne
of gold equivalent estimated to contain 26,358 ounces of gold equivalent and the Inferred
resource a further 529,267 tonnes at a grade of 4.6 grams per tonne gold equivalent estimated
to contain 56,146 ounces of gold equivalent. The 2018 Preliminary Economic Assessment (“PEA”)
plans for average yearly production of ~12,700 ounces gold equivalent for a life of mine of seven
years with potential for growth, at both depth and along strike , and it’s estimated that 80% of
the district has yet to be explored.
Pinos has all permits in-place for production and is currently being moved towards construction
under its PEA and will begin construction of a 200 tonnes-per-day (“tpd”) mining operation with
a path to ramp-up to 400 tpd within two years of initial production.
As the final step to funding construction, on June 24, 2020, Candelaria reported it had closed a
US$9.0 million medium term loan facility (“ Facility”) with Accendo Banco, S.A. (“ Accendo
Banco”). Funds advanced under the Facility will be used for financing construction of the Pinos
project.
Further information on the Pinos project can be found in Candelaria’s " NI 43-101 Preliminary
Economic Assessment Study for the Pinos Project Zacatecas Mexico " (the " Pinos Technical
Report") titled authored by Jose Antonio Olmedo, Geol. Eng., M.Sc. and David J. Salari, P. Eng.,
dated October 16, 2018 and effective September 13, 2018. The Pinos Technical Report was
prepared in accordance with NI 43 -101 and is available on Candelaria's company profile at
www.sedar.com.
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PUBLIC LISTING EVENT
Empress has submitt ed an application to be listed as an investment issuer on the TSX Venture
Exchange (the “Exchange”), and the listing is subject to satisfying the Exchange that the Company
meets applicable listing requirements and obtaining Exchange approval for the listing.
ABOUT EMPRESS ROYALTY CORP.
Empress Royalty is a new precious metals royalty and streaming company focused on the
creation of unique financing solutions for mining companies. Empress has an existing portfolio
of 13 gold royalties and is actively focused on finding industry partners with development and
production stage projects who require additional non-dilutive capital. The Company has strategic
partnerships with Endeavour F inancial in London, Terra Capital in Australia and Accendo Banco
in Mexico 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.
ON BEHALF OF EMPRESS ROYALTY CORP.
Per: Alexandra Woodyer Sherron, CEO and President
For further information , please visit our website at www.empressroyalty.com or contact Alexandra Woodyer
Sherron, CEO and President, by phone at +1.604.331.2080 or email at [email protected].
This news release contains statements about Empress ’ expectations regarding the Alliance Agreement which are
forward-looking in nature and, as a result, are subject to certain risks and uncertainties. Generally, forward-looking
statements can be identified by the use of forward- looking terminology such as “ expects”, “believes”, “anticipates”,
“aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions,
events or results “ will” occur. Although Empress believes that the expectations reflected in these forward -looking
statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from
the forward -looking statements. Factors that could cause the actual results to differ materially from those in
forward-looking statements include Empress Royalty not being successful in or deciding not to pursue opportunities
in the royalties business . The forward-looking statements contained in this news release are made as of the date
hereof, and Empress undertakes no obligation to update publicly or revise any forward- looking statements or
information, except as required by law. Readers should not place undue reliance on forward- looking statements or
information.