Empress Royalty Closes and Fully Funds Gold Stream on Galaxy Mine

VANCOUVER, BC / ACCESSWIRE / February 27, 2024 / Empress Royalty Corp. (TSXV:EMPR )(OTCQX:EMPYF) ("Empress Royalty" or the "Company") is pleased to announce it has closed and fully funded the previously announced US$5M gold stream (the "Investment") on the Galaxy gold mine ("Galaxy") in South Africa owned by Golconda Gold Ltd. (TSXV:GG)(OTCQX:GGGOF) ("Golconda").

"The Galaxy investment is our fourth revenue generating asset, immediately accretive to our revenue outlook," stated Alexandra Woodyer Sherron, CEO & President of Empress Royalty. "This funding facilitates the purchase of underground equipment and development to maximise mill throughput and drive production ounces higher with commensurate reduction in AISC for Galaxy. Empress is aggressively focused on building the portfolio and deploying further capital into cashflow generating investments which is expected to result in another year of growth."

THE INVESTMENT

As announced on November 23, 2023, Empress entered into a US$5M metal purchase and sale agreement (the "Agreement") with Galaxy Gold Reefs (Pty) Ltd., a subsidiary of Golconda, and Golconda and certain of its affiliates, for payable gold production from the Galaxy mine in South Africa. The Investment is based on 3.5% of the payable gold production from the Galaxy mine for an initial 8,000 payable ounces; thereafter, the percentage will reduce to 2.0% of the payable gold production until the earlier of: (i) 20,000 ounces having been paid to Empress; or (ii) 20 years after the first payment was made. The purchase price for the payable gold delivered pursuant to the Agreement is 20% of the gold spot price.

The Investment was funded by the Company's Accordion Credit Facility (the "Credit Facility") with Nebari Gold Fund 1, LP and Nebari Natural Resources Credit Fund II, LP (collectively, "Nebari") as announced on December 5, 2023.

In accordance with the terms of the Credit Facility, the Company issued 5M common share purchase warrants (the "Bonus Warrants") to Nebari. Each Bonus Warrant is priced at $0.31 and is exercisable into one common share of the Company for a period of three years from the drawdown date. The Bonus Warrants are subject to a four-month plus one day hold period. The Credit Facility allows for the issuance of additional Bonus Warrants to Nebari upon further draws on the Credit Facility equal to 500,000 (or the pro rata amount) for every US$5M drawn thereafter. The issuance of any further Bonus Warrants to Nebari under the Credit Facility is subject to the limitations of the policies of the TSX Venture Exchange (the "Exchange") and subject to Exchange review prior to issuance.