ExGen Resources has signed a binding letter of intent (LoI) to secure a second silver stream (Silver Stream 2) tied to a formerly producing gold mine in South America.
This deal mirrors an earlier agreement by the company, effectively doubling its total silver streaming interest at the site.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The new LOI is with an arm’s length private entity (PrivateCo), which plans to acquire the property via an option arrangement with the current owners, a group of private individuals.
As per the terms of the LOI, ExGen has paid $500,000 to obtain a 33.3% silver stream on the first 333,333 ounces of silver produced from the property.
Beyond that threshold, ExGen will receive a 16.7% silver stream on additional silver production.
For deliveries under Silver Stream 2, ExGen will pay PrivateCo a price equal to 20% of the spot silver price, as quoted on a major exchange to be mutually agreed by the parties.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataExGen chief executive officer CEO Jason Riley said: “With two silver streams now secured, we are building a formidable foundation of potential future cash flow, strategically positioning ExGen to capitalise on silver price momentum and drive long-term value.”
Under the LOI, starting in second quarter (Q2) of 2027, PrivateCo must deliver at least 4,200 ounces(oz) of silver to ExGen every calendar quarter.
If PrivateCo falls short of this quarterly minimum, it will make up the shortfall by paying ExGen the equivalent value in gold.
ExGen will have a right of first participation in any future streaming or royalty deals that PrivateCo undertakes on the property.
The parties may execute a definitive streaming agreement reflecting the LOI’s terms and conditions, along with other customary provisions typical for similar transactions.
