Empress closes and finances the royalty on the Manica gold project

Empress Royalty Corp. (TSXV: EMPR) (OTCQB: EMPYF) (“Empress” or the “Company”) is pleased to announce that it has closed and funded the previously declared 2.25% royalty (the “Royalty”) on the production Manica hard rock gold project in Mozambique (“Manica” or the “Project”) operated by Mutapa Mining & Processing LDA (“MMP

“The Manica Royalty Gold Project marks an exciting milestone for Empress,” said Alexandra Woodyer Sherron, CEO and President of Empress. “Once MMP completes 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.

INVESTMENT AND TRANSACTION

On February 22, 2021, Empress signed a royalty purchase agreement to create a royalty on Manica gold sales for a total consideration of US $ 2,000,000. Payments to Empress under the royalty agreement are based on 2.25% of the revenue generated from the sale of project gold until a total of 95,000 ounces of gold has been sold. Thereafter, the percentage will be reduced to 0.75% and will continue in perpetuity. The royalty is secured by a first ranking security interest in certain MMP assets. On April 20, 2021, Empress fully closed and funded the $ 2,000,000.

THE PROJECT

Manica is located in the Odzi-Mutare-Manica greenstone belt in Mozambique and includes several deposits on Xtract’s Resources Plc’s 3990C mining concession permit (the “Concession“) Which includes four deposits: Fair Bride, Guy Fawkes, Boa Esperanza and Dots Luck.

Image 1. Manica Gold Project – Existing Mill and Grinding Circuit

MMP and Xtract have entered into a collaboration and benefit-sharing agreement under which MMP will build, finance and operate a Carbon Leaching Plant (CIL) to process ore mined from the Xtract concession.

Minxcon Pty Ltd (“Minxcon“), A South African engineering and consulting firm, has prepared a technical report (the”Technical report“) Entitled“ Technical Report NI43-101 on the Fair Bride Gold Project, Mozambique, Mineral Resources Report ”dated February 1, 2021 by U. Egelmann B.Sc. (Zoo. Et Bot.), B.Sc. L ‘hon. (Geol.), Pr.Sc.Nat., MGSSA (a copy is available at www.sedar.com under the Empress profile).

The technical report provides a total mineral resource estimate for Fairbride at a cut-off grade of 0.5 g / t. The mineral resource estimate is further subdivided into a surface mineral mineral resource (“Open pit mineral resource“) And an underground mineral mineral resource. A cut-off grade of 0.5 g / t was used for the open pit mineral resource and a higher cut-off grade of 1.5 g / t was used for the underground mineral resource. The tables below summarize the resources presented in the technical report.

Total mineral resource for the fair bride

(at a cut-off grade of 0.5% g / t as of February 1, 2021)

Mineral Resource Category

Tons

Gold grade

Gold content

Mt

g / t

kg

koz

Measured

9,764

1.86

18 163

584.0

Indicated

4.239

1.59

6,757

217.2

Total M&I

14.003

1.78

24 920

801.2

Deducted

12 930

1.65

21,313

685.2

Notes: 1) Mineral resources are declared at the thresholds indicated. 2) No geological loss is recorded. 3) A gold price of US $ 1,650 / oz was used for the thresholds. 4) Mineral resources include mineral reserves (no declared mineral reserves). 5) Mineral resources are declared as 100% attributable.

Open pit mineral resources at a cut-off grade of 0.5 g / t and at a final depth of 280 m below surface as of February 1, 2021

Mineral Resource Category

Tons

Gold grade

Gold content

Mt

g / t

kg

koz

Measured

9,750

1.86

18 130

582.9

Indicated

3.310

1.62

5 368

172.6

Total M&I

13.060

1.80

23,498

755.5

Deducted

0.894

1.17

1,049

33.7

Notes: 1) Mineral resources are declared at the thresholds indicated. 2) No geological loss is recorded. 3) A gold price of US $ 1,650 / oz was used for the thresholds. 4) Mineral resources include mineral reserves (no declared mineral reserves). 5) Mineral resources are declared as 100% attributable.

Underground mineral resources at a limit of 1.5 g / t and at a depth of 280 m below the surface on February 1, 2021

Mineral Resource Category

Tons

Gold grade

Gold content

Mt

g / t

kg

koz

Measured

0.005

4.40

24

0.8

Indicated

0.307

2.61

801

25.8

Total M&I

0.312

2.64

825

26.5

Deducted

5.350

2.59

13 874

446.1

Notes: 1) Mineral resources are declared at the thresholds indicated. 2) No geological loss is recorded. 3) A gold price of US $ 1,650 / oz was used for the thresholds. 4) Mineral resources include mineral reserves (no declared mineral reserves). 5) Mineral resources are declared as 100% attributable.

An estimate of mineral reserves was prepared for Fair Bride in 2016 as part of a final SAMREC compliant feasibility study (“DFSHowever, significant changes to the mine’s plan and strategy since DFS mean that this reserve estimate is out of date and does not comply with NI 43-101 requirements. MMP expects to ” mine the open pit mineral resource at Fair Bride without updating the DFS or its reserve estimate or completing other studies.

MMP has informed Empress of its intention to mine and process oxide and transition ore at Fair Bride and other deposits in the concession by installing a processing plant using a CIL process capable of processing up to 42,000 tons per month. An existing grinding circuit is already in place and MMP is advancing the engineering, manufacturing and installation of the CIL plant and the preparation work for the associated infrastructure.

Empress will provide a further update on the progress of the project in due course.

Image 2. First filling and compaction in the CIL zone

Image 3: Residue storage installation works

ABOUT Empress Royalty Corp.

Empress Royalty is a new precious metals royalty and streaming company focused on creating unique financing solutions for mining companies. Empress has a portfolio of 16 investments and is actively focused on finding industrial partners with development and production projects that require additional non-dilutive capital. The Company has strategic partnerships with Endeavor Financial in London, Terra Capital in Australia and Accendo Banco in Mexico which allow Empress not only to access global investment opportunities, but also to bring unique financing expertise. mining, transaction structuring and access to financial markets. Empress looks forward to continuously creating shareholder value through proven royalty and streaming models.

ON BEHALF OF Empress Royalty Corp.

By: Alexandra Woodyer Sherron, CEO and President

For more 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 by email at [email protected].

Richard Mazur, P.Geo, a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects, has read and approved the technical and scientific information contained in this press release. Mr. Mazur is a director of the company.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release contains statements about Empress’s expectations regarding the royalty purchase agreement and royalties that are forward-looking in nature and, therefore, are subject to certain risks and uncertainties. Generally, forward-looking statements can be identified by the use of forward-looking terms such as “expects”, “believes”, “plans”, “aims”, “plans” or “intends” or variations of these words. . and sentences or statements indicating that certain actions, events or results “will happen”. While Empress believes that the expectations reflected in these forward-looking statements are reasonable, they should not be relied upon because actual results may differ materially from forward-looking statements. Factors that could cause actual results to differ materially from forward-looking statements include the timing and success of MMP in building its plant on the Project and bringing the Project into production. The forward-looking statements contained in this press release are made as of the date hereof, and Empress assumes no obligation to publicly update 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.

SOURCE: Empress Royalty Corp.

See the source version on accesswire.com:
https://www.accesswire.com/641479/Empress-Closes-and-Funds-Manica-Gold-Project-Royalty


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