Mithril to Acquire the La Dura Gold-Silver Property Adjacent to its Flagship Copalquin Property, Durango State, Mexico

On December 5, 2025, Mithril Silver and Gold announced it has entered into an exclusive option agreement to acquire 100% of the La Dura gold-silver property in Durango, Mexico. The property is contiguous with Mithril's flagship Copalquin project, located just 5 kilometers from their existing support office.

The terms of the four-year option agreement require total payments of US$4 million, structured with an initial payment of US$25,000 and 50,000 shares, followed by staggered payments over the option period. Mithril has committed to completing LiDAR and aerial magnetic surveys in the first year and a minimum of US$200,000 in exploration spending in the second year. The vendor will retain a 2.5% Net Smelter Royalty (NSR), of which 1.5% can be purchased by Mithril for US$2.5 million.

The press release also provided a brief operational update, confirming that drilling is progressing at Targets 1 and 5 at Copalquin, with drilling at Target 3 scheduled to commence in January 2026.

The acquisition of the La Dura property is a strategic, positive development. The option agreement structure is highly favorable for Mithril, requiring minimal upfront capital and allowing the company to focus its robust cash position on advancing the core Copalquin targets. This "bolt-on" acquisition consolidates a key land package with a history of past production, expanding Mithril's district-scale potential in a familiar geological setting. Management's prior experience on the property (2017-2018) reduces the learning curve and execution risk.

This news builds on a consistent stream of positive exploration updates throughout 2025. The company has successfully raised capital (C$11.5M in July 2025), defined and started drilling new targets (Target 2 and Target 5), extended known mineralization at Target 1, and consistently delivered high-grade surface sampling and drill results. The operational update reaffirms this momentum, with a firm start date for drilling at Target 3 in January 2026.

However, a critical review of the company's timeline reveals a significant miss. The key catalyst of an updated Mineral Resource Estimate (MRE) for Target 1 has been repeatedly delayed. - December 2024: MRE update planned for the "end of Q1 2025". - April 2025: MRE cut-off date extended to "late May 2025". - July 2025: MRE update vaguely slated for "H2 2025". - December 2025: The update is now simply referred to as "upcoming".

This persistent delay is a major concern. While positive drill results are encouraging, the inability to deliver a key, promised milestone like a resource update raises questions about the complexity of the deposit or internal modeling challenges. An updated resource is critical to validating the exploration success and quantifying the project's growth.

Despite this risk, the La Dura acquisition is a logical, low-risk strategic move that enhances the long-term potential of the Copalquin district. It demonstrates prudent capital allocation while expanding the company's footprint. The impact is materially positive but tempered by the continued delay of the more critical resource update.

Mithril Silver and Gold Limited is a precious metals exploration company focused on its flagship Copalquin Gold-Silver District in Durango State, Mexico. The 70 km² property (now expanded with the La Dura acquisition) lies within the prolific Sierra Madre Gold-Silver Trend and hosts over 100 historic mines. The company's strategy is to define a multi-million-ounce, high-grade, district-scale system. The primary focus has been on the Target 1 area (El Refugio-La Soledad), which hosts a JORC/NI 43-101 compliant maiden resource estimate from November 2021 of 529,000 AuEq ounces at 6.81 g/t AuEq. The company is aggressively exploring multiple other targets across the property.