Altiplano Metals signs deal to sell El Penon mill

Altiplano Metals Inc. announced a definitive framework asset purchase agreement to sell the El Peñón mill, related land, and permits in Chile to Tersus Tierras SpA for $1.54 million USD. The transaction is classified as a reviewable disposition under TSX-V Policy 5.3, as the assets represent greater than 50% of the company's total assets, business, or undertaking.

Closing is strictly conditional upon TSX Venture Exchange approval, shareholder approval (via meeting or written consent), and the execution of settlement agreements with the purchaser and certain creditors of Altiplano Minerals Chile SpA. Proceeds will be directed toward satisfying obligations under settlement agreements and settling trade payables in Chile. The board unanimously recommends shareholder approval. A shareholder meeting is anticipated for November 2026, or written consent may be sought.

This follows recent legal proceedings where a Chilean court ordered the liquidation of subsidiary Andes Metals SpA due to a $282,000 USD claim, and the Santa Beatriz mine remains on care and maintenance.

Altiplano Metals Inc. (APN) has sold its El Peñón mill, a move that dismantles the company’s core processing infrastructure. The mill served as the primary revenue-generating asset, responsible for processing copper-gold and iron concentrates. Its disposal signals a strategic retreat rather than a growth initiative.

The $1.54 million USD purchase price is modest relative to the company’s $4.21 million in total liabilities and $3.45 million in negative working capital. Proceeds from the sale will likely be absorbed by creditor settlements and legal obligations, leaving minimal residual value for equity holders.

This transaction aligns with the company’s ongoing distress, which includes the court-ordered liquidation of a subsidiary and operational pauses. It confirms management’s pivot away from active production toward debt resolution.

The sale removes the company’s primary operational asset, increasing reliance on remaining exploration properties, Regalo and Socorro II, which lack a feasibility study. This shift heightens the risk of further dilution or liquidation.

Altiplano Metals Inc. is a Chile-based mining company focused on copper, gold, and iron. Its flagship asset is the El Peñón Processing Facility, a 5,000 tonnes per month (tpm) capacity plant located 30km from Coquimbo port. Construction was completed in 2024, with permits allowing operation through September 2028. The plant produces concentrates containing 26% Cu, 1.8 g/t Au, and >65% Fe.

The company’s Santa Beatriz Mine is a 56ha permitted IOCG project located 13km from El Peñón. It is currently in underground development but was placed on care and maintenance since March 2026. No feasibility study has been conducted for the project.

Exploration activities include the Regalo Claim, which comprises 200ha within a 4.5km IOCG corridor, and Socorro II, an IOCG vein structure. Management is led by Executive Chairman John Williamson and President & CEO Alastair McIntyre, both of whom have 30+ years of industry experience.