Royalties Inc. Secures Victory in Appellate Court, Confirming Royalty Rights and Capstone Ordered to Pay Legal Costs
Royalties Inc. Secures Victory in Appellate
Court, Confirming Royalty Rights and
Capstone Ordered to Pay Legal Costs
Toronto, Ontario--(Newsfile Corp. - November 6, 2025) -
Royalties Inc. (CSE: RI)
(OTCID: ROYIF)
(or
"the
Company
") Minera Portree de Zacatecas S.A. de C.V. ("MPZ"), a company in which Royalties Inc.
holds an 88% ownership stake, is proud to announce a positive outcome from the Civil Chamber of the
Superior Tribunal of Justice of Zacatecas, Mexico. In its November 4, 2025 decision (Appeal TOCA
A.C. 77/2025), the Appellate Court upheld and confirmed the first-instance ruling in its favor. The
appellate decision upholds the company's entitlement to royalties stemming from a January 11, 2002,
mining contract and rejects the appeals filed by defendants Raúl González Anaya, Capstone Gold S.A.
de C.V., and third-party Gerardo González García.
In the original ordinary commercial trial (case number 411/2022), initiated by Luis Emilio Villanueva,
Sole Administrator and General Attorney-in-Fact of Minera Portree, the Third Commercial Court of the
Judicial District of the Capital ruled on June 16, 2025, that the
defendants had improperly
transferred and exploited royalties without authorization
. The court found that Raúl González
Anaya exceeded his granted powers under a May 20, 2010, legal act, which was declared nonexistent,
leading to the unauthorized sale of royalties belonging to Minera Portree.
The Appellate Court, in its unanimous decision (TOCA A.C. 771/2025), deemed the appellants'
arguments inoperative and inadmissible, affirming that the core issues of royalty recognition and
payment were not effectively challenged. The ruling requires Raúl González Anaya, Gerardo González
García, and Capstone Gold S.A. de C.V. (a fully owned subsidiary of Capstone Copper Corp.
"Capstone") to cover all procedural expenses and costs from both instances, in accordance with Article
1084 of the Federal Commercial Code of Mexico.
Key Highlights from the Ruling:
Confirmation of First-Instance Decision:
The Appellate Court fully upheld the June 16, 2025,
ruling, confirming Minera Portree's rights to royalties from the 2002 contract and declaring the
2019 transfer act nonexistent.
Rejection of Appeals:
Appellants' grievances were dismissed as they failed to address core
issues like royalty entitlement, focusing instead on unrelated matters such as mining exploitation
details.
Unauthorized Transfer Finding:
Raúl González Anaya was
determined to have sold
royalties without proper authorization, exceeding his powers and effectively dealing in
another's property
.
Legal Cost Re-imbursement:
Defendants and the third party are ordered to pay all expenses
and costs for both court instances, to be regulated during sentence execution.
Case Closure:
The matter is archived as legally concluded, with notifications issued and files
returned to the originating court.
The decision marks the conclusion of the appellate process, with certified copies to be returned to the
originating court and the case archived as resolved.
"We are pleased the Mexico courts have logically concluded that the 2% NSR could not be transferred to
Capstone without proper authorization from and payment to MPZ. We are looking forward to Capstone's
co-operation in properly calculating the amount owed on production to date and the future value of the
2% NSR on all five Portree/Parroquia claims," stated Tim Gallagher, CEO.
About Royalties Inc.
Royalties Inc. owns a 100% interest, subject to a 1.5% NSR owned as a separate asset, on the
Bilbao silver-zinc-lead project located in the State of Zacatecas, Mexico.
Royalties Inc. owns 88% of the outstanding shares of Minera Portree de Zacatecas, S.A. de C.V
("MPZ") which holds an asserted claim (backed by a court approved lien) to a 2% net smelter
royalty established in 2002 on five mining concessions called the 'Portree claims', a portion of
which is on the Mala Noche Footwall Zone, the main source of production at the Cozamin mine
where Capstone Copper Corp. ("Capstone") has been mining since 2010. Capstone assigned
this royalty to themselves without the knowledge of or proper payment to MPZ, the longstanding
and rightful owner, in 2017 and 2019. MPZ filed civil and criminal lawsuits in Zacatecas in 2021 to
invalidate the contract to transfer ownership.
Royalties Inc. has a 4.9% stake in
Music Royalties Inc
. ("MRI"), which has acquired 31 cash-flowing
catalogs and paid out over $12 million in dividends since 2019 from 31 cash-flowing catalogs
generating a 7.2% annual yield.
For further information contact Royalties Inc. at
www.royaltiesinc.com
.
Tim Gallagher
CEO & Director
(416) 925-0090
Connor Gallagher
Investor Relations
(647) 921-2206
Andrew Robertson
Director
(416) 317-0137
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accuracy of this press release.
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plans and strategy may not be obtained as expected; that the Company will not be able to pay future
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www.SEDARplus.ca
. Accordingly, readers are cautioned not to place
undue reliance on forward-looking statements contained in this press release and they are expressly
qualified in their entirety by this cautionary statement. The forward-looking statements herein are
made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of
management on such date.
The Company does not undertake any obligation to update publicly or
revise any such forward-looking statements whether as a result of new information, future events or to
explain any material difference between subsequent actual events and such forward-looking
information, except as required under applicable securities law.
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