Adyton signs LOI to sell gold concentrate from Wapolu

Executive Summary

• Adyton Resources Corp. received a non-binding Letter of Intent (LOI) from Hyosung TNC Corp. for the purchase of gold concentrate from its Wapolu gold project in Papua New Guinea.
• The company reports a material improvement in payable terms for gold concentrate, anticipating a 15% improvement over previous terms used in internal modeling, driven by strong demand from global trading houses.
• This development, combined with strong gold prices, is expected to significantly enhance the value of the Wapolu and Gameta projects on Fergusson Island, supporting the targeted production restart in late 2026.

Key Details

• Counterparty: Hyosung TNC Corp. (Korean group).
• Agreement Type: Non-binding Letter of Intent (LOI) for the purchase of gold concentrate.
• Project: Wapolu gold project, located on Fergusson Island, Papua New Guinea.
• Payable Terms: Anticipated 15% improvement from terms previously provided and used in Adyton's internal modeling.
• Production Timeline: Targeted restart of production at Wapolu in late 2026.
• Project Status: Advancing precursor inputs for Mining Lease (ML) application and Conservation and Environment Protection Authority (CEPA) permit submission.
• Infrastructure: Wapolu is a proposed restart of a past-producing mine (mid-1990s, ~9,000 oz Au); benefits from existing infrastructure including airstrips, workshops, warehouses, wharf, and tailings impoundments.
• Joint Venture: Adyton is advancing the project with partner EVIH.
• Resource Data (Fergusson Island Projects):
  • Indicated Resources: 4.0 million tonnes at 1.33 g/t Au (173,000 oz contained gold).
  • Inferred Resources: 16.3 million tonnes at 1.02 g/t Au (540,000 oz contained gold).
  • Note: Resources are open at depth and along strike; current drilling aims to increase confidence for reserve estimation.
• Feni Island Project (100% owned):
  • Inferred Resources: 60.4 million tonnes at 0.75 g/t Au (1.46 million oz contained gold) at a 0.5 g/t cut-off.

Notable Quotes

• Tim Crossley, CEO, Adyton Resources: "This LOI is a very positive indicator for our Fergusson Island projects, highlighting robust demand for precious metal concentrates. The material improvement in payable terms combined with the current strength in gold prices positions our Fergusson projects to generate strong cash flows."
• Gary Wang, CEO, EVIH: "This indicative concentrate pricing is very positive for our Fergusson Island projects and, combined with the strong gold price, provides us with strong motivation to accelerate all aspects of project permitting and development."