Appian Capital Advisory Limited (“Appian”), the investment advisor to long-term value-focused private capital funds investing in companies in metals, mining and adjacent industries, announces it has closed a US$75 million senior secured credit facility with Empress Royalty Corp. (“Empress” or the “Company”).
- The non-dilutive, flexible capital supports Empress’ growth ambitions, including its acquisition of Appian’s Tongon gold stream
- US$20 million of committed capacity is set aside for future royalty and stream acquisitions
- Appian is now Empress’ senior lender, giving its investors exposure to a growing pure-play precious metals royalty and streaming company
The credit facility provides strategic capital and enhanced financial flexibility as Empress expands its dedicated portfolio of gold and silver royalty and streaming investments. Empress has used part of the facility to finance its acquisition of Appian’s interest in the gold stream on the Tongon Gold Mine (“Tongon”) in Côte d’Ivoire, owned and operated by the Atlantic Group, for an upfront cash payment of US$62 million.
The completed financing package comprises a US$55 million initial draw and a US$20 million commitment, available for 12 months following closing to fund future mutually agreed royalty and stream acquisitions. The creative financing structure demonstrates Appian’s ability to provide bespoke and non-dilutive capital solutions to its partners while optimizing risk-adjusted returns for its investors.
The facility is secured by a first-priority security interest over Empress’ royalty and streaming assets. As part of the financing, Appian has also received warrants in Empress, giving its investors equity-linked upside as the Company grows.
In addition to Tongon, Empress’ diversified portfolio includes four producing assets: a silver stream on Luca Mining’s Tahuehueto mine in Mexico; gold streams on Sierra Sun Group’s Sierra Antapite mine in Peru and Golconda Gold’s Galaxy mine in South Africa; and a gold royalty on the Manica mine in Mozambique. Empress also holds a royalty on the development-stage Pinos gold-silver project in Mexico, as well as 24 exploration royalties.
The transaction builds on Appian’s experience in royalties and streaming, with a portfolio that includes several attractive long-life assets across a diverse set of commodities: a gold stream on Asante Gold Corporation’s operating Bibiani and Chirano mines in Ghana; a net smelter returns royalty on NexGold’s Goldboro Project in Canada; a lithium royalty on Lithium Ionic’s Bandeira Project in Brazil; and a polymetallic royalty on US Strategic Metals’ processing and recycling facility in Missouri, U.S.
Michael W. Scherb, Founder and CEO of Appian, commented: “We are pleased to have closed this facility with Empress, a disciplined royalty and streaming business. Through our credit and royalty strategy, Appian offers non-dilutive capital tailored to management teams’ growth plans. This facility gives Empress the capacity to take the next step in growing its portfolio and gives Appian exposure to a diversified precious metals royalty and streaming platform. We look forward to working with the Empress team as they continue to scale.”
For further information
Appian Capital Advisory Limited
Andrew Todd, Head of Communications: +44 7990 416759 / [email protected]
+44 (0)20 7004 0951 / [email protected]
About Appian Capital Advisory Limited
Appian Capital Advisory Limited is the investment advisor to long-term value-focused private capital funds that invest in companies in metals, mining, and adjacent industries.
Appian is a leading investment advisor with global experience across South America, North America, Australia and Africa and a successful track record of supporting companies in metals, mining, and adjacent industries to achieve their development targets, with a global operating portfolio overseeing over 13,000 employees.
Appian has a global team of ~100 experienced investment professionals, combining financial and technical expertise, with presences in London, Abu Dhabi, New York, Washington D.C., Dubai, Belo Horizonte, Hong Kong, São Paulo
and Toronto.
For more information, please visit www.appiancapitaladvisory.com or find us on LinkedIn, Instagram or Twitter/X.
