NGEx Reports Q3 2025 Results; Focus on Lunahuasi Exploration Following Successful Financing and Spin-out
Executive Summary
- NGEx Minerals reported Q3 2025 financial results showing a net loss of C$28.7 M but highlighted a substantially strengthened balance sheet after closing an oversubscribed C$175 M private placement.
- The company launched Phase 4 drilling at the Lunahuasi project, targeting 25,000 m with up to eight rigs, building on two new discoveries identified in Phase 3.
- Completed the spin‑out of LunR Royalties Corp., distributing LunR shares to NGEx shareholders and retaining a 19.9 % stake; LunR now holds NSR royalties on the Los Helados (Chile) and Lunahuasi (Argentina) concessions.
Key Details
- Private Placement:
- Closed Oct 15 2025, non‑brokered, 7,000,000 common shares at C$25.00 per share.
- Gross proceeds ≈ C$175 M; 5 % finders’ fee paid in cash.
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Net proceeds earmarked for further exploration at Lunahuasi, continued work at Los Helados, and general corporate/working‑capital purposes.
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Spin‑out of LunR Royalties Corp.:
- Effective Oct 23 2025; each NGEx share received ¼ of a LunR common share.
- NGEx retained 13,370,107 LunR shares (19.9 % ownership) after the spin‑out.
- LunR holds a 1.38 % NSR royalty on Los Helados and a 1 % NSR royalty on the Argentine Lunahuasi concession.
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NGEx contributed $4.35 M capital to LunR for acquisition of the royalties and working capital.
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Phase 4 Lunahuasi Drill Program:
- Commenced Oct 2025 with six rigs; two additional rigs mobilizing, aiming for eight rigs total.
- Planned 25,000 m of drilling to:
- Define and expand Mars, Saturn, Jupiter zones (short‑range resource definition).
- Extend mineralized intersections and discover new high‑grade zones (mid‑range step‑out).
- Test district‑scale targets for additional components (long‑range exploration).
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Initial assay results expected late 2025.
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Q3 2025 Financial Highlights (in C$ thousands):
- Exploration & project investigation expenses: $16,307 (vs. $6,218 prior year).
- G&A expenses: $14,725 (vs. $6,035 prior year).
- Net loss: $28,662 (vs. $9,847 prior year).
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Basic/diluted loss per share: $0.14 (vs. $0.05 prior year).
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Liquidity Position (as of Sep 30 2025):
- Cash: $85.7 M (down from $153.4 M Dec 31 2024).
- Short‑term investments: $46.4 M.
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Working capital: $125.6 M.
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Corporate Actions:
- Arrangement approved by shareholders Sep 12 2025; court order obtained Sep 18 2025.
- Exchange of NGEx shares and options for new NGEx shares, LunR shares, and LunR stock options as detailed in the release.
Notable Quotes
“With our treasury further strengthened by the closing of the recent equity financing and the spin‑out of the Lundin Group's first royalty company now completed, NGEx's attention has turned to the Phase 4 drill program currently underway at Lunahuasi…” – Wojtek Wodzicki, President & CEO.