Empress Royalty (TSX-V:EMPR) has agreed to acquire a gold stream on the Tongon Gold Mine in Côte d’Ivoire for US$62 million ($87.21 million) upfront.
Empress Royalty Holding entered into a stream purchase agreement with Appian Tongon Streamco, a subsidiary of Appian Capital Advisory, to acquire the stream on the mine owned and operated by the Atlantic Group.
Empress also secured a US$75 million credit facility with Appian Empire Loanco, providing US$55 million at closing to partially fund the acquisition and US$20 million for future royalty and stream purchases.
CEO Alexandra Woodyer Sherron says this will be a ‘transformational’ transaction for Empress.
“The Tongon Gold Stream is expected to substantially increase our gold ounces, revenue and cash flow from an established producing mine,” Sherron says.
The stream entitles Empress to receive 3.58% of payable gold production from Tongon until 400,000 cumulative ounces produced since 31 January 2026 have been delivered.
Under the terms, the percentage steps down to 2.93% until 600,000 cumulative ounces are delivered, before continuing at 0.81% for the remainder of the approximately 29-year term.
Empress will pay 0.5% of the gold market price for each ounce delivered under the stream. The seller may receive contingent payments of US$40 per ounce when deliveries reach 400,000 ounces, capped at US$19 million aggregate.
Additional participation payments equal to 35% of Empress’ stream economics from annual Tongon production above 51,000 ounces may be payable through 2040, following the contingent payment cap.
The Tongon Gold Mine is an open pit operation located 540km north of Abidjan. Atlantic Group acquired Barrick Mining‘s (NYSE:B) approximately 90% interest in the mine in 2025.
The credit facility bears interest at 7.50% per annum plus three-month Term SOFR (secured overnight financing rate), subject to a minimum Term SOFR rate of 3.50%. The facility is secured by substantially all assets of Empress Holdings and its subsidiaries.
Closing remains subject to customary conditions including completion of due diligence, regulatory approvals, and absence of material adverse change.
Empress Royalty is a royalty and streaming company focused on creating wealth through investment in gold and silver mining companies.
Write to Paula Fabe at Mining.com.au
Images: Empress Royalty
