Empress Royalty Corp. (TSXV:EMPR | OTCQB:EMPYF) (“Empress” or the “Company”) is pleased to announce the execution of the US$5M silver stream agreement (the “Stream”) on the Tahuehueto project in Mexico owned by Telson Mining Corporation (“Telson”).
“We are excited to be working with Telson and our strategic partners to get this remarkable asset into production,” stated Alexandra Woodyer Sherron, CEO and President of Empress. “This transaction demonstrates the unique funding solutions we can provide to our mining company partners and highlights the value of our strategic partnerships. We continue to deliver on our strategy to build a portfolio of near-term producing assets and creating value for our shareholders.”

THE INVESTMENT & TRANSACTION
Empress has now executed the US$5M silver stream agreement on production from Telson’s Tahuehueto project in Mexico. The US$5M Stream is on 100% of the payable silver production from Tahuehueto for the first 1,250,000 payable ounces; thereafter, the percentage will stepdown to 20% of the payable silver production to a maximum of 10 years from first production after which the Stream terminates.
Telson has announced that its Tahuehueto project is approximately 60% constructed, with initial production forecast for late 2021 and full scale production forecast for early 2022. For further information, please see the Telson Mining Corporate website for more information (www.telsonmining.com).

FULL FINANCING SOLUTION
The US$5M silver stream will be provided in two tranches (US$2M shortly and US$3M on closing of the Accendo Banco loan) and represents the second stage of a US$25M full financing solution being provided to Telson by Empress and its strategic partners Accendo Banco and Endeavour Financial. The first stage was the US$8M private placement in Telson which closed on March 30, 2021. The third stage is the Accendo Banco US$12M loan facility and re-finance of existing loans.
In the event the third stage fails to close, the obligations of the Stream will terminate and any partial draw downs of the Stream advance are to be converted into shares of Telson at the then WWW.EMPRESSROYALTY.COM PAGE 2

Market Price as calculated on the date of termination. Telson has informed the Company that documentation is progressing well and anticipates closing near the end of April or early May 2021.
This full financing package demonstrates the opportunity that Empress and its strategic partners can offer its mining company partners, to expand production or get development assets into production.

THE PROJECT
Tahuehueto is located in the mining friendly jurisdiction of Durango, Mexico. It is a typical epithermal polymetallic mineral deposit in this part of Mexico, with metals consisting of gold silver, zinc, copper and lead. Based on the PFS completed in 2017, the project had a 21 year lifeof-mine (“LOM”) at a production rate of 550 tonnes per day.

The mine is fully permitted, has all social licenses to operate, including with the local Ejido, has offtake agreements in place with Trafigura, and has already produced a saleable concentrate, processing over 42,000 tonnes of ore on a toll mill basis during 2018 - 2019. This confirmed the metallurgy as straight forward, with no need for fine or ultra-fine grinding, no refractory ore and the process uses standard “off the shelf” technology realizing excellent recoveries of payable metals.

see & read more on
https://empressroyalty.com/site/assets/files/6149/emprnr2021-11_telsonsilverstream.pdf