ExGen Signs Second Silver Stream LOI to Expand South American Gold Mine Interests

Wedoany.com Report-Dec.27, Mining company ExGen Resources announced it has signed a binding Letter of Intent aimed at acquiring a second silver stream interest in a formerly producing gold mine located in South America. This move doubles its silver stream interest at the mine site. This transaction echoes a previous agreement reached by the company, further solidifying its financial participation in the related mineral project.

The counterparty to this new LOI is an independent private entity that plans to acquire the mine asset from its current owner through an option arrangement. According to the agreement terms, ExGen has paid $500,000 to secure 33.3% of the first 333,333 ounces of silver produced from the mine. After exceeding this production threshold, ExGen will receive 16.7% of any additional silver production thereafter as revenue. In consideration, ExGen will pay the counterparty an amount equivalent to 20% of the spot silver price for silver delivered under the Silver Stream 2, with the price referenced to agreed-upon quotes from a major exchange.

ExGen CEO Jason Riley stated, "With the establishment of two silver supply streams, we are building a strong foundation for future cash flow, enabling ExGen to fully capitalize on rising silver prices and drive long-term value growth." The agreement stipulates that, starting from the second quarter of 2027, the counterparty must deliver at least 4,200 ounces of silver to ExGen per calendar quarter. If the quarterly minimum delivery requirement is not met, the counterparty must make up the shortfall by paying an equivalent value in gold. Furthermore, ExGen holds a right of first participation regarding any future streaming or royalty transactions the counterparty may undertake on this asset. Both parties anticipate signing a definitive streaming agreement, which will reflect the LOI terms and standard industry practice terms. The signing of this silver stream LOI marks a further deepening of ExGen's strategic positioning in South American mineral resources.