Tahuehueto

In April 2021, the Company executed a streaming agreement on production from the Tahuehueto silver project, located in Mexico, owned and operated by Luca Mining (TSX.V: LUCA) (formerly Altaley Mining). Pursuant to the streaming agreement, the Company has the right to acquire 100% of silver production at 20% of the related off-take price in cash up to 1,250,000 ounces, and thereafter may acquire 20% of production at 20% of the related offtake price in cash. The streaming agreement terminates 10 years from the date of initial production.

In consideration, the Company paid US$5,000,000 in two tranches: US$2,000,000 in April 2021 and US$3,000,000 in July 2021.

Tahuehueto is located in the mining-friendly jurisdiction of Durango, Mexico. It is a typical epithermal polymetallic mineral deposit with metals consisting of gold, silver, zinc, copper and lead. Based on the 2022 PFS, the project has a 10.9-year life-of-mine at a production rate of 1,000 tonnes per day.

The mine is fully permitted and has offtake agreements in place with Trafigura. It has already produced a saleable concentrate, processing over 42,000 tonnes of ore on a toll mill basis during 2018–2019, confirming straightforward metallurgy with no need for fine or ultra-fine grinding and standard “off the shelf” technology delivering payable metals.