Hayasa Metals Signs Term Sheet with a Major Mining Company to Enter a Strategic Exploration Alliance

Hayasa Metals Inc. has executed a non-binding term sheet for a Strategic Exploration Alliance with a Major Mining Company (MMC) to conduct copper and critical metals exploration in southern Armenia. The alliance features a two-year phase funded entirely by MMC, with a minimum expenditure of US$1,000,000 to earn a First Option for a 51% interest in designated projects. A Second Option allows MMC to increase its stake to 70% by funding an additional US$3,000,000 over three years. Hayasa retains operator status and benefits from an 18-month "Funding Holiday" to defer its pro-rata operational budgets.

Concurrently, Teck Resources Limited terminated its option on the Vardenis property, returning the 93 km² exploration license to Hayasa. Additionally, the TSX Venture Exchange consented to extend the expiry of 11,165,222 units (carrying 5,582,641 warrants) to March 23, 2028, with an exercise price of $0.22.

Hayasa Metals Inc. (HAY) has secured a significant de-risking event through an alliance with MMC, which will fully fund a two-year exploration phase without immediate equity dilution. The earn-in structure, allowing MMC to acquire 51% and subsequently 70% of the project, aligns incentives and provides a clear path to monetization or joint venture development.

This development follows the termination of Teck’s Vardenis option, a setback that removes a well-known partner and a potential funding stream for that specific asset. However, management notes strong inbound interest and retains full control of the license. Additionally, a warrant extension serves as an administrative action that reduces near-term dilution pressure and extends the capital runway. The strategic alliance with MMC outweighs the Teck exit, providing fresh capital, validation of the geological model, and a structured path forward.

Hayasa Metals Inc. (HAY) is an Armenia-based exploration company focused on copper, gold, and critical metals. Its flagship project is the Urasar exploration permit, a 3,380-hectare property in northern Armenia that features a 14-km continuous geochemical anomaly containing three Au-Cu mineralized zones: Oxide Basin, Black River, and Yellow River. The geological model for Urasar is a porphyry-style hydrothermal system characterized by intense silicification, brecciation, and potassic alteration. Recent drilling has intersected significant copper and gold intervals, although no defined resources exist yet.

The company also holds the Vardenis project, a 93 km² area described as a classic porphyry-epithermal system sharing stratigraphy with the Amulsar project. Following Teck’s exit, Hayasa is pursuing new partners for this secondary asset. The company is currently in the advanced exploration stage, with management emphasizing a first-mover advantage in a stable, mining-friendly jurisdiction with a modern regulatory framework.