ExGen signs binding LOI to secure a silver stream on a Chilean gold mine, marking its first precious metals streaming deal.
ExGen Resources Inc. has announced that it has entered into a binding letter of intent (LOI) dated December 15, 2025, with an independent, arm’s-length private company to acquire a silver streaming interest linked to a past-producing gold mine located in Chile. The agreement represents a significant strategic milestone for ExGen as it advances its objective of building a diversified portfolio of precious metals streaming and royalty assets.
Under the terms outlined in the LOI, ExGen has agreed to acquire a substantial silver stream tied to production from the mine, referred to as the Property. As consideration for the transaction, ExGen has made an upfront cash payment of US$500,000. In return, the company will receive a 33.4% silver stream until a total of 333,334 ounces of silver have been delivered. After this threshold is reached, ExGen will continue to benefit from a reduced but ongoing 16.7% silver stream on all future silver production generated from the Property. This structure allows ExGen to secure early exposure to silver output while retaining long-term upside potential.
Commenting on the transaction, Jason Riley, Chief Executive Officer of ExGen, said that the company has been actively reviewing a range of potential streaming and royalty opportunities and expressed enthusiasm about formalizing its first silver stream through this binding LOI. He emphasized that the agreement aligns with ExGen’s broader growth strategy and reflects management’s confidence in the streaming model as a capital-efficient way to gain exposure to precious metals production.
The Property itself is currently owned by a consortium of private individuals, referred to as the Vendors. The private company involved in the transaction (PrivateCo) is in the process of seeking ownership of the Property through an option agreement with the Vendors. In accordance with the requirements of the LOI, ExGen’s initial US$500,000 payment was made directly to the Vendors on behalf of PrivateCo, supporting the advancement of the option arrangement and aligning the interests of all parties involved.
The LOI sets out several key commercial terms governing the silver stream. In addition to the upfront payment, ExGen will pay PrivateCo an ongoing delivery price for each ounce of silver received under the stream. This delivery price will be equal to 20% of the prevailing spot silver price, as determined by a mutually agreed major commodity exchange. This pricing mechanism is designed to provide ExGen with leveraged exposure to silver prices while ensuring a predictable cost structure.
Importantly, the agreement includes minimum delivery commitments. Beginning in the second quarter of 2027, PrivateCo is obligated to deliver at least 4,200 ounces of silver to ExGen each calendar quarter. Should this quarterly minimum not be met, the Vendors are required to compensate ExGen for any shortfall using an equivalent value of gold, thereby reducing delivery risk and enhancing the security of the stream.
In addition, ExGen has secured preferential participation rights in any future streaming or royalty transactions that PrivateCo may pursue in connection with the Property. This provision offers ExGen the opportunity to further expand its economic interest as the asset develops.
While the LOI is binding, the parties intend to negotiate and execute a definitive silver streaming agreement that will incorporate the terms outlined in the LOI, along with other conditions customary for transactions of this nature. Completion of such an agreement would further solidify ExGen’s entry into the silver streaming space and position the company for long-term value creation.
