PPX Mining Announces Debt Settlement
PPX settled royalty debt by issuing equity at $0.24 per share, preserving cash flow.
PPX Mining Corp. has entered into a debt settlement agreement with an arm's length creditor to fully settle outstanding royalty payments totaling US$643,681.10 (CAD$916,128.78). The settlement is executed through the issuance of 3,817,203 common shares to the creditor at a deemed price of CAD$0.24 per share.
The transaction requires TSX Venture Exchange approval and carries a standard statutory hold period of four months and one day post-issuance. This follows a similar debt settlement announced on July 29, 2026, where 6,533,921 shares were issued at CAD$0.185 to settle CAD$1.21M in royalty obligations.
PPX Mining Corp. has finalized a debt settlement that eliminates future cash outflows for royalty payments, a move designed to preserve operating liquidity for the ongoing construction of the Igor processing plant and future exploration campaigns. The transaction was executed through the issuance of 3.82 million shares at CAD$0.24, a price representing a slight premium to the company’s recent trading range of $0.20–$0.22. This pricing structure indicates a negotiated settlement rather than a distressed fire sale.
The deal serves as a direct continuation of the company’s active debt restructuring strategy, aligning with previous settlements and the RIVI convertible debenture conversions. Dilution from the issuance is incremental and manageable relative to the approximately 900 million share base. By removing a recurring cash burden without requiring immediate cash expenditure, the market impact is expected to be neutral to slightly positive.
PPX Mining Corp. operates the Igor Project in northern Peru's La Libertad region, a complex that includes the operating Callanquitas underground mine, the Callanquitas East and West exploration zones, and the Portachuelos surface exploration area. The flagship Callanquitas mine has delivered record Net Profit Interest (NPI), with H1 2026 NPI reaching CAD$15.9M, significantly outperforming prior years.
The company is currently constructing a 350 tpd on-site carbon-in-leach (CIL) and flotation processing plant. Once operational, the plant is expected to reduce transport costs from $35/tn to $3/tn, cut processing costs by approximately 50%, and increase NPI margins from 75% to 80%.
Exploration efforts are heavily focused on expanding high-grade oxide, mixed, and sulfide zones at Callanquitas. Metallurgical testing has confirmed high recoveries, recording 92.2% Au and 87.5% Ag for oxides, and 97% Au and 94.8% Ag for sulfides. Additionally, drilling has commenced at Portachuelos following environmental approval, targeting historical high-grade structures to expand the project's resource base.