Silver Crown Royalties to acquire 15% royalty on PPX's Igor 4 project
Canada-based mining company PPX and royalty company Silver Crown Royalties (SCRi) have entered into a royalty agreement for up to 15% of the cash equivalent of silver produced from PPX’s Igor 4 project, in Peru, for $2.47-million.
The first tranche of $1-million will be paid on closing of the agreement, which is expected to occur in early 2025. SCRi will be granted a royalty for 6% of the cash equivalent of silver produced from the project.
The royalty will increase to 15% upon completion of a second tranche payment of $1.5-million, which is due within six months of the agreement closing.
PPX plans to use the proceeds from the royalty agreement, together with other funding sources, to complete the construction of a 250 t a day carbon-in-leach and flotation plant at Igor 4.
The royalty will be payable immediately based on current operations at the project and, beginning on and from the earlier of October 1, 2025, and the startup of metallurgical operations at the plant. It will provide for minimum deliveries of the cash equivalent of 14 062.5 oz of silver per quarter up to a total of 225 000 oz.
Upon the delivery of the cash equivalent of an aggregate of 225 000 oz of silver to SCRi, the royalty will automatically terminate.
"We are thrilled to welcome this Peruvian producer into our expanding portfolio of revenue generating royalties. With over 20 000 annual silver ounces currently, we anticipate reaching 80 000 silver ounces annually by the fourth quarter of 2025 with the full completion of this transaction,” comments SCRi CEO Peter Bures.
“We welcome SCRi’s funding. It will support construction activities at site, as well as other working capital requirements during this critical and transformational period for the
company,” adds PPX CEO John Thomas.
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