Pinos

In November 2020, Empress completed the acquisition of a combined 1% NSR royalty on the Pinos gold and silver project in Mexico for an aggregate consideration of $1,954,950 (US$1,500,000) cash. The acquisition combined a newly created 0.5% NSR royalty on the Pinos project for US$750,000, and the purchase of a 0.5% NSR royalty on the Pinos project from an existing royalty holder for an additional US$750,000. Empress' royalties create a direct real property interest in the Pinos project that shall continue in perpetuity and is registered against title.

The Pinos project, 100% owned by a private company, is located in the high-grade historical gold and silver district of the Zacatecas mining belt in north-central Mexico, just 67 kilometers northwest of San Luis Potosi. Zacatecas state, the second largest gold producing district in the country after Sonora, is a stable, mining-friendly state that includes Newmont Mining's Peñasquito mine and Capstone Mining's Cozamin mine.

Pinos has excellent infrastructure with paved roads to the entry of the mine and electricity on-site. The project consists of 29 concessions comprising 3,816 hectares (roughly 17 kilometers of veins containing gold and silver). The veins have been mined historically to a depth of only 180 meters due to reaching the water table, but mineralization has been shown to continue at depth.

Pinos has all permits in place for production and is currently being moved towards construction under its PEA. The operator will begin construction of a 200 tonnes-per-day mining operation with a path to ramp up to 400 tonnes per day within two years of initial production.