Fully-committed non-brokered private placement of 45.83M units at C $0.24 for $11M.
Each unit consists of one share and one three-year warrant at C $0.32 per share.
Expected to close on or about April 30, 2026 with no finder’s fees.
All securities will be subject to a 4-month, plus one day from closing date.
Participants in the financing are sophisticated investors and insiders will participate for 15.83M units for gross proceeds of $3.8M.
Proceeds will be used to complete a two phase 50,000-meter drilling program at Cerro Caliche gold project in Sonora, Mexico.
Drilling campaign will partially focus on infill drilling at western mineralized zones where the Company plans to commence operations.
Prior drilling at western zones demonstrated multiple high-grade ore shoots & returned higher-grade gold intercepts within larger intervals of high-grade gold mineralization.
Expansion drilling is also planned to investigate potential structural continuity of the project’s epithermal vein structure into the newly acquired northern extension.
Geological data from newly acquired extension illustrates comparable geological characteristics and grades of the project’s northwest trending mineralized corridors.
Recently announced updated Mineral Resource Estimate included measured and indicated resources of 644k ounces of gold equivalent at 0.39 g/t AuEq.
With less than 30% of known mineralized zones in the original 1,340 ha project drilled and assayed to date, the drilling program has significant potential to expand the project’s known mineralized system.
Primary objective remains advancing Cerro Caliche into production, which is currently in permitting phase for an initial open-pit, heap leach mining operation.
Recently announced updated PEA demonstrates the potential viability for a ten-year operation at a projected capacity of up to 16,000 tonnes per day.
Base Case Prices of $3,500/oz gold and $48/oz silver highlights a pre-tax NPV8 of USD $360M and pre-tax IRR of 65%
Post-tax NPV8 of USD $224M and pre-tax IRR of 50% with a payback period of 1.7 years.
Drilling program will proceed alongside development of the proposed operation. The map below shows the proposed drill holes for the upcoming program:
