Defiance signs surface access deal at Green Earth

Executive Summary

• Defiance Silver Corp. secured a five-year long-term surface access agreement for the Victoria target at its Green Earth project in Sonora, Mexico, allowing for surface exploration, drilling, and engineering studies.
• The company granted a significant package of equity-based compensation, including stock options, deferred share units (DSUs), performance share units (PSUs), and restricted share units (RSUs) to employees, directors, and consultants.
• The Victoria target is described as a large, previously untested Laramide-age porphyry copper-molybdenum-gold system within the prospective Sonora Laramide porphyry copper belt.

Key Details

• Access Agreement:
  • Secured a five-year agreement for surface access at the Victoria target.
  • Rights include surface exploration, drilling, and engineering studies at the Green Earth project.
  • Executive Chairman/CEO Chris Wright stated this unlocks value and allows for capital-efficient advancement of the Victoria target.
• Victoria Target Technical Highlights:
  • Located in the Sonora Laramide porphyry copper belt (hosting world-class deposits like Cananea and La Caridad).
  • Green Earth project spans approximately 6,800 hectares.
  • Features a large alteration footprint (phyllic and potassic assemblages).
  • Leached capping with anomalous copper, molybdenum, and gold geochemistry.
  • Intermediate-sulphidation epithermal veins present.
  • Strong geophysical responses, including coincident MT and IP chargeability/resistivity anomalies.
• Equity Grants (Omnibus Awards):
  • Stock Options: 2.72 million options granted to employees, directors, and consultants.
    • Exercise price: $0.35 per share.
    • Term: 5 years from grant date.
    • Vesting: Equal vesting over a 3-year period starting on the grant date.
  • Deferred Share Units (DSUs): 289,000 DSUs granted to directors.
    • Each DSU represents a right to receive one common share upon cessation of director service.
    • Vesting: One-year anniversary of the grant date.
  • Performance Share Units (PSUs): 458,000 PSUs granted to employees.
    • Each PSU entitles holder to one common share on vesting.
    • Vesting: One-year anniversary of grant date, subject to corporate and individual performance criteria.
  • Restricted Share Units (RSUs): 314,000 RSUs granted to employees.
    • Each RSU entitles holder to one common share on vesting.
    • Vesting: Equal vesting over a 3-year period beginning on the one-year anniversary of the grant date.

Notable Quotes

• "Securing surface access at Victoria is an important step in unlocking the value of the Green Earth project. This agreement allows us to advance Victoria in a disciplined, capital-efficient manner," stated Chris Wright, executive chairman and chief executive officer of Defiance Silver.