May 12, 2026
Letters of Intent (“LOIs”) to acquire 100% interest in 24 mineral concessions and up to 51% interest in 5 mineral concessions:
- Concessions are located adjacent or within proximity to Cerro Caliche gold project in Sonora, Mexico.
- Strategic opportunity to demonstrate Cerro Caliche as part of a larger gold epithermal system, with wide-scale potential to host multiple mineralized zones.
- Potential to build Cerro Caliche into a district-scale gold mineral project with multiple major mineralized zones.
- Numerous exploration programs conducted across the new concessions resulting in multiple mineralized targets.
- 100% interest in 24 mineral concessions over 5,025.21 ha for USD $6.0 million payable in installments over twenty months:
- Plus payment of outstanding mineral concession fees totaling approximately USD $990,000.
- No issuance of any securities or any grant of a royalty interest.
- Extensive historical data from multiple exploration programs conducted over the past 30 years.
- Soil and rock geochemical samples, surface and underground workings, drilling campaigns and geophysical surveys been completed.
- Concession hosts various veins and mineralized structures with potentially similar geological, structural and mineralized characteristics as Cerro Caliche.
- Up to a 51% interest in 5 mineral concessions over 453.91 ha for up to USD $9M in exploration expenditures over four years:
- Will earn 12.75% interest for each USD $2.25M of exploration expenditures incurred.
- No issuance of any securities or any grant of a royalty interest.
- Historical drilling data suggests concessions may host continued extensions of Cerro Caliche’s northwest trending mineralized corridors.
- Historic mineralized intersections of both high and low grade may continue at depth within parallel vein systems.
- Company’s integrated exploration approach will incorporate structural reinterpretation, modern geophysics, 3D geological modeling and systematic drilling programs.
- Aimed at expanding mineral resources, identifying new mineralized centers and evaluating the potential of multiple underexplored gold corridors.
- Cerro Caliche in the final permitting stage for proposed open-pit, heap leach mineral operation.
- Updated 2026 PEA demonstrates potential viability for an initial ten-year mining operation at 16,000 tpd.
- PEA based on only approximately 30% of the known mineralized zones identified on the original 1,350-hectare property.
- Utilizing a gold price of USD $3,500 per ounce, report highlights an after tax NPV8 of USD $224M and an IRR of 50%.
- Utilizing the spot gold price of USD $5,186 per ounce, at the time of the report, it highlights an after tax NPV8 of USD $525M and an IRR of 91%.
- Cerro Caliche was recently expanded by 11 additional mineral concessions to almost 4,000 hectares.
- Acquisition of 24 concessions will expand the property to 9,001 hectares, plus another 454 hectares through a potential 51% ownership in another five concessions.
The map below illustrates the new concessions under the three LOIs.
