The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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EMPRESS ROYALTY ANNOUNCES PRE-PRODUCTION AT MANICA GOLD MINE
Empress Royalty Corp. (TSXV:EMPR | OTCQB:EMPYF) (“Empress Royalty” or the “Company”) is pleased to announce that pre-production has commenced at the Manica Gold Mine (“Manica” or the “Mine”). The Company owns a 3.375% royalty on Manica, which is located in Mozambique and operated by Mutapa Mining & Processing LDA (“MMP”).
“Congratulations to the team at MMP for their hard work and dedication in taking Manica from a development stage project into a producing mine,” stated Alexandra Woodyer Sherron, CEO and President of Empress Royalty. “The Manica Gold Mine is our second development asset reaching pre-production and demonstrates our team’s ability to make strategic investments that create significant returns and value for our shareholders.
End of the day it doesn’t matter (unless it impacts XTR inflows, I’d be shocked if it does as surely this should been an RNS)
But why would empress give away there rights to a royalty on the satellite deposits that the agreement gives specifies they have access to?
Hi Andrew
My take would be that MMP will get 8% of the gross revenue from the GF and BE, they would then give Empress there royalty from this 8%, leaving MMP with a shade under 5% of the monthly revenues and empress with 3% (there royalty). So assuming the Chinese contractor perform it seems a win win.
Cheers
James
Colin did originally negotiate a buy out deal for Manica hard rock with MMP but that has now lapsed I think. We could keep the revenue from FB and maybe sell on the other stuff (since we are only getting around 13% for those).
From James' link:
". Manica is located in the OdziMutare-Manica Greenstone Belt of Mozambique and comprises of several deposits on Xtract
Resources Plc’s mining concession licence 3990C, which includes four deposits, being Fair Bride,
Guy Fawkes, Boa Esperanza, and Dots Luck."
This doesnt mean Empress have any involvement now with the other three deposits, but It seems strange to me that Empress mention the other three if they didnt think they would be involved with them in the future? Or had no intention of being involved?
Woodford also said the three other deposits they would be "going after”, so not part of empress involvement yet, but maybe they will try and do a deal to secure them?
All speculation until we get confirmation.
They do state them in that pdf (Gf, BE, DL), so maybe a little disingenuous to suggest there are 3 that they are looking at (since only DL isn't already being worked).
Looks like I'm wrong in expecting 3 new ones.... I'll get back in my box .....lol.
I wonder if Empress have fully grasped the implications that Colin involved Longhau as operators at GF and BE ? If I recall Longhau were brought in by Colin due to MMP not being in a position to generate revenue at the time which Colin wanted ? MMP did then agree to a smaller slice and allowed Colin to do that deal. I'm just wondering if Empress fully understand that MMP are getting a reduced slice from GF and BE. Just so long as any association that MMP has with Empress doesn't reduce our agreed take.
I’ve only skim read the conversation over the last few days so apologies if I’ve missed the point.
But looking at the empress RNS they clearly state the satellite deposits
https://empressroyalty.com/site/assets/files/6229/emprnr2022-01_manicaincrease.pdf
I don't know if it's already been mentioned but some time ago, probably a couple of years or more, Colin mention the possibility of other contractors in the area using our plant from the surrounding areas.
Don't know if this was a serious discussion or a throw away comment? I suspect that would be after we are finished with it.
Ant, I don't disagree with any of the information you state and btw that is an excellent summary at an ideal time for everyone here. I.e. we are going to be getting quite complicated quarterly revenue reports going forward and I doubt most of us will be able to decipher them.
My point about the 3 areas referred to by Empress is that they talked about 3 areas that they were looking at with MMP. I dont think they would say that if they were talking about 2 of tge areas being worked by other contractors.
Add that to Colins statements about their being so many things to look into at Manica with nobody fully understanding the geology of the area and their agreement with MMP to explore more sites to identify more feedstock for their new plant.
I'm sticking to my "hope" that Empress were referring to 3 areas not yet stated.... and my hope that they are on the XTR licence .
Exciting times .....
AS
I was referring to a drill rig on a truck, for drilling out samples. See website, Manica Project July 17 pic 10/10, I remember Colin talking about this being ours, either at investor show or an AGM?
something going on we do not know about... :-)
I believe XTR have/had their own drill rig down in Manica, there used to be a picture of it somewhere on the website, or at a presentation,Colin has often mentioned further exploration at Manica, actually it was mentioned to use excess cash from the raises last year, can be something going on we do not know about...
rns 29th aug 2018
I'm totally confused now as to who we have agreements with ! I thought MMP now had sole agreement with us for all Manica hard rock ? Are Omnia and MMP one and the same ? Come on Colin... spill the beans !
antsquasher, you should cast your eye over rns 29th aug 2018 , you may find it illuminating or further adding to any confusion depending on how you look at it . gordie
He stated the lower grade dirt that is being processed first to "fill the nooks and crannies" in the equipment was identified as they stripped back Fairbride to start building a stockpile of feedstock. So it won't be from Guy Fawkes or Boa Esperanza..... they are both being worked under a separate contract by different contractors anyway. I cant see how they can now start feeding the MMP plant.
I'm hoping the 3 areas of interest are 3 new areas
Empress might have an agreement based upon the processing plant .... their funding was to get it up and running anyway......
So any further finds that the plant processes is probably their follow on revenue.... but as you say.... doesn't affect our cut.
BE and GF are already being exploited by a different contractor.... im hoping its other areas yet to be drilled..... but still under our license.
Would love to know more details though
I thought our hard rock agreement was now with MMP (FB GF DL BE) but was originally going to be with Omnia. I dont think we have a current agreement with Omnia as the MMP agreement superseded that with Omnia. Is there a connection between Omnia and MMP ? I know we have subcontracted out GF BE and DL (ourselves and MMP getting a cut) so I'm not sure what interest Empress have outside of their agreement with MMP regarding FB. I'm not sure if there is enough cake to go around for them to want a slice of anything other than their FB agreement with MMP (which is basically nothing to do with us and is between themselves and MMP). Does anyone know what involvement Omnia now has on our Manica patch ? Does their plant that needed upgrading have anything going through it that it is not benefitting XTR ?
https://www.youtube.com/watch?v=iQ5XWhIe2gU&t=5s&ab_channel=RedCloudFinancialServicesInc
It was in the interview. 9mins in. The question is what were the three other deposits they were talking about when they said going after them? My guess is it could have been DL, BE and GF??
"My thoughts are that Empress generally add value where there is already value and de-risked. If there is much drilling to be done still, I don’t think it would maybe be for them"
I agree with this. Thats why I think it possible that the "three other deposits" Empress talked about could well be DL, BE and GF. Would we not have heard about other drilling in the area in addition to the three deposits we know about?
That said, I may well be adding 2+2 and getting 22.
Antsquaher many thanks for bringing some fresh input, good to know you are a long termer.
Do we know where these other resources sit in terms of being ready to be mined or their evolution. My thoughts are that Empress generally add value where there is already value and de-risked. If there is much drilling to be done still, I don’t think it would maybe be for them.
There is no doubt over the whole license huge potential for investment that would potentially suit their usual strategy of “investing in mining companies with development and production stage projects who require additional non-dilutive capital.”
Reading the ‘2018 Hard rock collaboration agr. update’
>> A number of these sites (Guy Fawkes, Dots Luck and Boa Esperanza) have under prior ownership had some exploration drilling and mining activities but none of these sites would justify the construction of a plant solely for their production. <<
Is intriguing to know where Empress could fit in and how lucrative it could be for Xtract going forward.
Ant somehow I missed Andre and wasn't aware of it being discussed by Colin. I'll have to look into it further.
I've been informed that Cleantech (Lebanese) are partners of MMP but I'll need to look into this to corroborate it.
Cheers
Great find Ant
Some of those old workings have intriguing names. I particularly liked
Two Fools,
Birthday Gift,
Donkey and
Laugh
Baobab were bought out on hostile take over