The TSX Venture Exchange has accepted for filing documentation pertaining to two third amended option agreements effective July 12, 2023, and Oct. 11, 2023, respectively, between the company and four arm's-length parties, to two mining exploration and option agreements (the original option agreements) dated June 22, 2018, which have their first addendums effective June 21, 2019, and the second addendums effective April 4, 2023, with respect to the company's option to acquire from the vendors a 100-per-cent ownership of three mineral concessions located in Sonora, Mexico.

According to the terms under the third amended option agreements, to satisfy the option payment for 2023, the company has paid an aggregate of $200,000 (U.S.) in cash and issued 16,808,750 shares at a deemed price of 12 cents per share on June 24, 2023, in satisfaction of $1.5-million (U.S.) payment in shares. The final option payment has been scheduled for June 25, 2024, and will comprise an aggregate of $200,000 (U.S.) in cash and issuance of up to 10,969,922 shares at a deemed price being equal to the higher of: (i) the closing price of the shares on the TSX Venture Exchange on June 24, 2024; or (ii) 9.5 cents per share to satisfy the $775,000 (U.S.) option payment in shares.

The original option agreements include a 2-per-cent net smelter return (NSR) royalty in favour of the vendors on the concessions once they have reached the commercial production stage. The company may repurchase the NSR royalty from the vendors for an aggregate cash payment of $3-million (U.S.) under the terms of the original option agreements.

For more details, please refer to the company's news releases dated Dec. 7, 2017, June 25, 2018, June 27, 2019, April 6, 2023, and Oct. 20, 2023.