Xali Gold Outlines Plans for Pico Machay Gold Project in Peru

The October 28, 2025, news release outlines Xali Gold's plans for the newly acquired Pico Machay Gold Project in Peru. Following the TSX Venture Exchange's approval of the acquisition documentation, the trading halt imposed on October 23, 2025, will be lifted on October 29, 2025.

The company's CEO, Joanne Freeze, stated their priority is to "move Pico Machay forward aggressively." The plan for the next six months includes updating the historic resource estimate, which was originally calculated using a US$700/oz gold price, and optimizing previous engineering studies. Further plans involve advancing exploration targets, conducting a bulk sampling program, and performing metallurgical testing.

This news is materially positive as it confirms the execution of a transformative strategic pivot for the company. After facing significant challenges with its Mexican assets, including unlawfully cancelled concessions and a dire financial situation, management successfully delivered on its stated goal to acquire an advanced-stage project in South America.

The acquisition of Pico Machay from a subsidiary of Pan American Silver gives Xali Gold a new flagship asset with a substantial historical resource and clear development potential, especially given the low gold price used in the original calculation. This news provides a concrete, near-term action plan, adding credibility to the acquisition and demonstrating management's intent to create value. Lifting the trading halt is also a crucial positive step, allowing the market to react to this fundamental shift in the company's story.

However, the positive impact is tempered by immense financial risk. The acquisition comes with a US$17.5 million payment obligation spread over several years, with US$500,000 due at closing. As of its last filed financials (March 31, 2025), the company had only C$38,293 in cash and a working capital deficiency exceeding C$3 million. The company's ability to make the initial payment, let alone fund the aggressive work plan and subsequent payments, is entirely dependent on a successful financing, which was mentioned as "planned for fall 2025" in a previous release but has not yet been announced.

While the news confirms a major strategic win, it simultaneously highlights the company's precarious financial position. The market's reception upon the resumption of trading will likely be a referendum on management's ability to secure the necessary funding to execute this turnaround.

Xali Gold Corp. is a junior mineral exploration company. Historically, its focus was on the El Oro gold-silver district in Mexico, a project plagued by disputes over mining concession cancellations and requiring partnerships to generate potential cash flow.

Following a strategic review, the company has pivoted its focus to South America. The new flagship asset is the Pico Machay Gold Project in Peru, acquired from Minera Calipuy S.A.C., a subsidiary of Pan American Silver. Pico Machay is a high-sulphidation epithermal gold deposit with a historical (non-NI 43-101 compliant) resource of 264,600 oz Au (Measured & Indicated) and 446,000 oz Au (Inferred). The project is royalty-free, though the acquisition comes with a large, staged payment obligation.