01:28 PM EDT, 03/12/2024 (MT Newswires) -- Up 14%, PPX Mining Corp. ( SNNGF ) announced Tuesday that it has subscribed a letter of intent (LOI) with Silver Crown Royalties Inc. (SCR) for a silver royalty to complete project financing for the 350 tpd CIL and flotation plant that the company intends to build.

The plant will process oxide and sulfide 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 a US$ 2.5 million funding payable in cash for a 15% silver royalty at the Igor 4 mining concession - the royalty expiring 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.

Brian Imrie, Executive Chairman said in a statement, "we are delighted to subscribe this LOI with SCR for a silver royalty transaction. This funding, together with the US$6 million 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."

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 US$ 2.5 million, payable in shares of SCR at $0.50 per common share or 5-day trailing VWAP of the common share, whichever is greater.