Bear Creek Mining Monetizes Tassa Project in Peru

Executive Summary

• Bear Creek Mining Corp. executed an agreement to sell its 100% interest in the non‑core Tassa Project (southern Peru) to Colque Holding Pty Ltd for total consideration of US $3.5 million, payable in staged installments over 30 months.
• The transaction includes a secured first‑ranking security interest on the Tassa concessions and grants Bear Creek a 2% net smelter return royalty, with an option for Colque to repurchase 1% for an additional US $2.5 million.
• A US $70,000 advisory commission was paid to BLB Advisory EIRL for facilitating the sale.

Key Details

• Total Consideration: US $3.5 million payable as follows:
• US $30,000 signing fee – already paid.
• US $470,000 upon execution of the Agreement (paid).
• US $500,000 due ≤6 months after Execution Date (First Deferred Payment).
• US $1,000,000 due ≤18 months after Execution Date (Second Deferred Payment).
• US $1,500,000 due ≤30 months after Execution Date (Third Deferred Payment).
• Security: All deferred payments are secured by a first‑ranking security interest over the Tassa concessions.
• Royalty Arrangement: Upon full payment, Bear Creek will receive a 2% net smelter return royalty on all minerals produced from Tassa. Colque may repurchase 1% of this royalty for an additional US $2.5 million.
• Advisory Fee: US $70,000 (2% of total consideration) paid to BLB Advisory EIRL for strategic advisory services related to the sale.
• Strategic Rationale: CEO Eric Caba stated the divestiture allows Bear Creek to focus capital and management resources on core assets while unlocking value from a non‑core project.

Notable Quotes

“This transaction underscores Bear Creek's commitment to focus its capital and management resources on its core assets while unlocking value from non-core projects.” – Eric Caba, President & CEO

The release contains forward‑looking statements regarding payment of deferred consideration, the royalty arrangement, and future activities at the Tassa property.