- Over-subscribed, non-brokered placement of 50.83M units at C $0.24 for $12.2M.
- Each unit consists of one share and one full three-year warrant at C $0.32 per share.
- All securities will be subject to a 4-month, plus one day ending August 25, 2026.
- Insiders participated for 15.65M 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:
