Montero enters option deals to buy Chile gold projects

Executive Summary

• Montero Mining and Exploration Ltd. (via subsidiary Minera Joy SpA) entered into two option agreements to acquire 100% of the Elvira and Potrero gold projects in Chile’s Maricunga belt.
• The options require staged payments totaling US$7 million per project over six years, with an initial US$40,000 payment due within 10 days of TSX‑V approval.
• Upon full payment, Montero will own the projects outright; the vendor retains a 2% NSR royalty (50% repurchasable for US$5 M within nine years).

Key Details

• Option Structure: Two separate agreements, each granting Montero the right to acquire 100% of Elvira and Potrero.
• Payment Schedule (per project):
• US$40,000 – within 10 days of TSX‑V approval
• US$100,000 – by Sept 15 2026
• US$150,000 – by Sept 15 2027
• US$260,000 – by Sept 15 2028
• US$400,000 – by Sept 15 2029
• US$550,000 – by Sept 15 2030
• US$5.5 M – by Sept 15 2031 (total US$7 M)
• Royalty Terms: Vendor retains a 2% net smelter return (NSR); Montero may repurchase 50% of this royalty for US$5 M within nine years of signing. No additional royalties.
• Project Highlights – Elvira:
• 1,000‑ha licence at ~3,900 m elevation; road access.
• High‑sulphidation epithermal system with 4.5 km × 3 km alteration zone.
• Historical drill intercept: 39 m @ 0.66 g/t Au (Anglo American/ Buenavista Gold).
• Project Highlights – Potrero:
• 3,200‑ha licence at 3,800–3,900 m elevation; road access.
• Epithermal system with 5.5 km × 2.5 km alteration zone.
• Historical RC drill intercepts: 126 m @ 0.44 g/t Au (Caracal Gold), including 18 m @ 0.80 g/t Au.
• Exploration Budget: US$140,000 allocated for each project to commence immediate mapping, sampling, and geophysical work.
• Management Comment: CEO Dr. Tony Harwood emphasized low‑cost entry, modest upfront payments, and the strategic location within a world‑class gold district.

Notable Quotes

“The acquisition of the Elvira and Potrero gold projects positions Montero at the heart of Chile's Maricunga belt… With modest initial staged payments, limited upfront capital, low holding costs and low royalties, Montero has secured a low‑cost entry into highly prospective projects at a time of historically robust gold prices.” – Dr. Tony Harwood, President & CEO

Materiality Assessment: Material – Positive (significant strategic acquisition with defined financial commitments and potential for future resource development).