ExGen Resources has announced a significant development in its Empire Mine Project with the signing of a Carried Interest Agreement with Phoenix Copper Ltd. on December 17, 2024. The agreement ensures that Phoenix will fund all of ExGen's construction and operating costs for the Empire Mine Open Pit Project in Idaho, USA. Phoenix, through a loan to Konnex Resources Inc., will provide the necessary capital, with the loan to be repaid from ExGen’s 20% share of profits. Notably, ExGen’s 20% ownership in Konnex remains unaffected by the funding agreement.

"This is a pivotal milestone for ExGen as the carried interest for the Project essentially creates a synthetic royalty payout structure, with ExGen maintaining its 20% interest while no longer being required to fund any of the construction or operating costs of the Project," said Jason Riley, CEO of ExGen. "This structure removes the upfront funding risk for ExGen and potentially significant dilution if ExGen had to raise the funds directly, or was unable to do so. We look forward to working with Phoenix in helping to advance the Project as rapidly as possible towards production."

In addition to this strategic financial arrangement, ExGen continues to hold 1,330,000 common shares of Phoenix. The Carried Interest Agreement also eliminates certain obligations from Phoenix, including the need to complete a feasibility study or make annual payments to ExGen. The fast-track approach to the Empire Mine Project is expected to advance the timeline to production efficiently.