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PPX Mining Corp
Symbol PPX
Shares Issued 636,077,828
Close 2024-03-11 C$ 0.035
Market Cap C$ 22,262,724
Recent Sedar Documents

PPX Mining signs LOI for 15% Ag royalty at Igor 4

2024-03-12 10:32 ET - News Release

Mr. Brian Imrie reports

PPX SUBSCRIBES US$ 2.5 MILLION SILVER ROYALTY LOI

PPX Mining Corp. has subscribed a letter of intent (LOI) with Silver Crown Royalties Inc. (SCR) for a silver royalty to complete project financing for the 350-tonne-per-day (tpd) carbon-in-leach (CIL) and flotation plant that the company intends to build. The plant will process oxide and sulphide ore currently mined from its high-grade Callanquitas mine (Igor project), located in La Libertad, Peru. One of the company's subsidiaries is in the final stage to receive its permit to start construction.

The key terms of this financing are as follows:

  • $2.5-million (U.S.) financing payable in cash for a 15-per-cent silver royalty at the Igor 4 mining concession.
  • The royalty expires upon the delivery of 250,000 ounces of silver or five years from closing, whichever occurs later.
  • Starting June 1, 2025, an annual minimum of 50,000 ounces of silver applies.
  • The company has the option, at its sole discretion, to increase the minimum annual silver ounces delivered to 100,000, increasing the termination cap from 250,000 to 500,000 silver ounces against additional $2.5-million (U.S.), payable in shares of SCR at 50 cents per common share or the five-day-trailing VWAP (volume-weighted average price) of the common share, whichever is greater.
  • The transaction is subject to due diligence. At commercially reasonable efforts, both parties expect to conclude due diligence by March 31, finalize definitive agreement by May 15 and close by June 30, 2024.

Brian Imrie, executive chairman, commented: "We are delighted to subscribe this LOI with SCR for a silver royalty transaction. This funding, together with the $6-million (U.S.) facility that the company had already secured, completes the financing for its processing plant, allowing PPX to start unlocking material value from its Igor project and setting the basis for a solid growth path."

About PPX Mining Corp.

PPX Mining is a Canadian-based mining company with assets in northern Peru. Igor, the company's 100-per-cent-owned flagship gold and silver project, is located in the prolific northern Peru gold belt in eastern La Libertad department.

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