Mexican Gold Acquires Tatatila Project in Mexico

Executive Summary

• Mexican Gold Mining Corp. acquired 100% of the Tatatila Project mineral titles (3,824.3585 ha) in Veracruz, Mexico from Chesapeake Gold Corp. and its subsidiaries.
• Consideration consisted of 4,451,361 common shares issued to Chesapeake (valued at $0.05 each, total deemed value $222,568) representing ~15% of Mexican Gold’s outstanding equity, plus a 1.5% net smelter return royalty with an optional buy‑back reducing it to 1%.
• The share consideration is subject to a statutory hold period (expires 2026‑03‑13) and a staggered lock‑up schedule releasing 25% each year starting 2026‑11‑12, with full release over 2.5 years; the transaction awaits final acceptance by the TSX Venture Exchange.

Key Details

• Acquired Asset: Tatatila Project mineral titles covering 3,824.3585 hectares adjacent to Mexican Gold’s Las Minas Project in Veracruz State, Mexico.
• Consideration Shares: 4,451,361 common shares issued at a deemed $0.05 per share (aggregate deemed value $222,568), representing 14.99% of total outstanding common shares.
• Royalty Grant: 1.5% net smelter return royalty to Chesapeake Mexico; Mexican Gold holds an option to purchase 0.5% of the royalty for US$500,000 within ten years, reducing the royalty to 1%.
• Share Hold Periods:
• Statutory hold expires 2026‑03‑13 (four months + one day from issuance).
• Lock‑up: 25% released on 2026‑11‑12 (one year after issuance); subsequent 25% releases every six months thereafter, with full release completed over 2.5 years.
• Regulatory Condition: Transaction remains subject to final acceptance by the TSX Venture Exchange.

Notable Quotes

(No direct quotes were provided in the release.)