J2 Metals receives TSX-V OK for Sierra Plata option

• The most recent release (May 25, 2026) confirms TSX Venture Exchange approval for a definitive option agreement between J2 Metals and IMPACT Silver Corp. regarding the Sierra Plata project in Mexico.
• This transaction finalizes an option announced previously on December 23, 2025 (LOI stage), allowing J2 to earn 100% of the 2,203-hectare project over three years.
• Consideration involves share issuance (up to 6 million shares total) and potential cash payments, with IMPACT retaining a 1.5% Net Smelter Return (NSR) royalty.
• The preceding Q1 2026 financial results (May 20, 2026) reported revenue nearly tripling to $31.2 million and a record net income of $11.3 million, driven by the Zacualpan operation.
• IMPACT Silver has temporarily suspended underground mining at the Plomosas Zinc-Lead-Silver Operation to optimize the mine plan, shifting focus to toll-milling arrangements and exploration.

• Asset Monetization: The J2 Metals option agreement allows IMPACT to unlock value on a peripheral asset (Sierra Plata) without deploying capital for development, as it is beyond economical trucking distance from existing processing facilities. This aligns with the strategy of focusing capital on core producing assets like Zacualpan and Plomosas.
• Dilution Risk: The deal involves issuing up to 6 million common shares over three years. Given the current share count of ~329.7 million, this represents approximately 1.8% potential dilution if fully exercised, which is manageable but must be monitored against share price performance.
• Earnings Quality: While Q1 2026 showed a significant turnaround to profitability ($11.3M net income), the suspension of Plomosas operations creates a dependency on Zacualpan for cash flow. The revenue increase was driven by higher silver prices and throughput, but cost discipline remains critical given the $8.8 million impairment loss recognized in FY 2025 at Plomosas.
• Regulatory Confirmation: The TSX-V approval is procedural confirmation of a previously disclosed LOI (Dec 2025). It does not introduce new fundamental variables but validates the execution of the partnership strategy.

• Company: IMPACT Silver Corp. (TSXV:IPT).
• Flagship Project: Zacualpan Silver-Lead-Zinc Operation (Guadalupe Mine) in Guerrero, Mexico. This is the primary cash generator, processing feed from multiple underground mines including Noche Buena and Kena Vein South.
• Secondary Asset: Plomosas Zinc-Lead-Silver Mine in Chihuahua, Mexico. Currently suspended for optimization but holds high-grade zinc resources (Santo Domingo Zone).
• Infrastructure: 500 t/d Guadalupe Processing Plant capable of handling feed from multiple sources.
• Exploration Focus: High-grade extensions at Kena Vein South and Juarez Zone have shown exceptional grades (e.g., 534.8 g/t Ag over 8.5m), supporting mine life extension.