K9 signs exploration, option agreements for Trinity

Executive Summary

• K9 Gold Corp. entered into an exploration agreement and a purchase‑option agreement with Newmont USA Ltd. for the Trinity silver project in Pershing County, Nevada (≈14,523 acres).
• Initial consideration: $50,000 cash + 100,000 K9 common shares; Year‑2 payment: $100,000 cash + 300,000 shares.
• Option to acquire all owned and leased lands for a one‑time $350,000 cash payment plus 700,000 K9 shares, subject to a 2 % NSR royalty (with an option to buy half of the royalty for $3.5 M).

Key Details

• Project Scope: 14,523 acres (5,881 ha) comprising historic open‑pit, heap‑leach silver mine; includes 1,280 acres owned by Newmont and 18,350 acres under five leases.
• Financial Terms – Exploration Phase:
• Year 0: $50,000 cash + 100,000 K9 common shares (rental payment for first 12 months).
• By end of Year 1: $100,000 cash + 300,000 K9 common shares (rental payment for second 12 months).
• Financial Terms – Purchase Option:
• One‑time purchase price: $350,000 cash + 700,000 K9 common shares.
• Ongoing royalty: 2 % net smelter return on production.
• Optional pre‑production buy‑out of 50 % of the royalty for $3.5 M.
• Regulatory: Transaction subject to approval by the TSX Venture Exchange; a finder's fee also requires exchange approval.
• Historical Production (context): 1,085,790 t mined at 6.32 oz/t Ag, yielding ~5 million ounces of silver.
• Resource Context: Historical NI 43‑101 resource estimates (oxide & sulphide) exist but are not treated as current resources; K9 will conduct a comprehensive data review and new drilling to update the model.
• Next Steps Planned by K9:
• Immediate review of historic geological, geophysical, and geochemical data using AI to build an updated deposit model.
• Structural analysis via satellite imagery and field mapping.
• Sampling of historical stockpile and twin‑hole drilling on key historic drill holes.
• Follow‑up drilling program aimed at producing a new mineral resource estimate.

Notable Quotes

“We are extremely pleased with the opportunity to enter into an option to purchase agreement on an excellent brownfield exploration project. With improving silver prices, the Trinity silver project (which includes the historic Trinity mine) gives us the ability to potentially develop a promising asset in a mining‑friendly jurisdiction.” – Jeff Poloni, CEO, K9 Gold Corp.