Royalties Inc. Announces Financing

Rhea-AI Summary

Royalties Inc. has announced a non-brokered private placement to raise up to $180,000 by issuing 6,000,000 shares at $0.03 per share. The funds will be used for corporate overhead in Canada and property taxes and litigation expenses in Mexico in 2025. The company notes that its Bilbao silver-zinc-lead project in Mexico's value is expected to be recognized when silver prices exceed US$40 per ounce. With a new judge appointed in Zacatecas, Mexico, final arguments regarding a 2% NSR on the Portree claims (part of Capstone Copper Corp.'s Cozamin mine) are expected to begin in January, with a judgment anticipated in the coming months.

Positive

• Legal proceedings for 2% NSR on Portree claims moving forward with final arguments stage
• Potential value recognition of Bilbao project tied to silver price milestone

Negative

• Dilutive financing of $180,000 at $0.03 per share
• Need for funds to cover basic expenses indicates cash flow concerns
• Bilbao project value recognition dependent on silver reaching $40/oz, significantly above current prices

Toronto, Ontario--(Newsfile Corp. - December 27, 2024) - Royalties Inc. (CSE: RI), ("the Company") announces a non-brokered private placement up to $180,000 at $0.03 per share for 6,000,000 shares intended to cover corporate overhead in Canada and property taxes and litigation expenses in Mexico in 2025. The value of the Bilbao silver-zinc-lead project in Mexico is expected to be recognized when the silver price sustainably exceeds US$40 per ounce. With the recent appointment of a new judge in Zacatecas, Mexico and the final arguments stage expected to begin in January, a judgment to properly recognize a 2% NSR on the Portree claims which are part of the Cozamin mine, operated by Capstone Copper Corp. should be rendered in the next few months.

About Royalties Inc.

Royalties Inc. has a 2% stake in Music Royalties Inc. ("MRI"), a Canadian-based private company that acquires passive music royalties from rightsholders (including but not limited to artists, producers and songwriters) and currently holds a portfolio of approximately 28 cash-flowing music royalties. MRI is currently paying a monthly dividend generating a 7.2% annual yield.

Royalties Inc. owns a 100% interest, subject to a 1.5% NSR repurchased and owned as a separate asset, on the Bilbao silver-lead-zinc-copper project located in the State of Zacatecas, Mexico.

Royalties Inc. owns 88% of the outstanding shares of Minera Portree de Zacatecas, S.A. de C.V ("Minera Portree") which holds an asserted claim (backed by a court approved lien) to a 2% net smelter royalty on five mining concessions which are part of the Cozamin mine operated by Capstone Copper Corp., which claim is challenged by Capstone.

For further information contact Royalties Inc. at www.royaltiesinc.com

Tim Gallagher	Andrew Robertson	Connor Gallagher
CEO & Director	Director	Investor Relations
(416) 925‐0090	(416) 317-0137	(647) 921-2206

Neither the CSE, nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this press release.

Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as "may", "will", "expect", "likely", "should", "would", "plan", "anticipate", "intend", "potential", "proposed", "estimate", "believe" or the negative of those terms, or other similar words, expressions, and grammatical variations thereof, or statements that certain events or conditions "may" or "will" happen, or by discussions of strategy. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is based on assumptions made in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties, and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to: sufficient capital and financing required in order to fulfill the Company's business plans and strategy may not be obtained as expected; that the Company will not be able to pay future dividends; and other risks related to the Company as disclosed in the documents filed on the Company's SEDAR profile at www.sedarplus.ca. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements contained in this press release and they are expressly qualified in their entirety by this cautionary statement. The forward-looking statements herein are made as at the date hereof and are based on the beliefs, estimates, expectations, and opinions of management on such date. The Company does not undertake any obligation to update publicly or revise any such forward-looking statements whether as a result of new information, future events or to explain any material difference between subsequent actual events and such forward-looking information, except as required under applicable securities law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235334

FAQ

What is the size and price of Royalties Inc's (ROYIF) December 2024 private placement?

Royalties Inc. announced a non-brokered private placement of up to $180,000 at $0.03 per share, issuing 6,000,000 shares.

How will Royalties Inc. (ROYIF) use the proceeds from its December 2024 financing?

The proceeds will be used for corporate overhead in Canada and property taxes and litigation expenses in Mexico in 2025.

What is the status of Royalties Inc's (ROYIF) legal proceedings regarding the Portree claims?

With a new judge appointed in Zacatecas, Mexico, final arguments are expected to begin in January regarding a 2% NSR on the Portree claims, with a judgment expected in the coming months.

What price does silver need to reach for Royalties Inc's (ROYIF) Bilbao project value to be recognized?

The Bilbao silver-zinc-lead project's value is expected to be recognized when silver price sustainably exceeds US$40 per ounce.