Heliostar signs deal to option properties to Zacatecas

Executive Summary

• Heliostar Metals Ltd. has entered into a binding letter agreement with Zacatecas Silver Corp. to grant Zacatecas an option to acquire a 100% interest in specific non-core exploration properties in Mexico.
• The transaction involves staged payments totaling $1.2 million (cash and equity) over three years, with an initial payment due upon closing.
• Heliostar retains a 2% Net Smelter Return (NSR) royalty on the properties, with a buyback option for 1% prior to commercial production.

Key Details

• Parties: Heliostar Metals Ltd. (Grantor) and Zacatecas Silver Corp. (Grantee).
• Assets: 100% interest in non-core exploration properties consisting of the Cumaro, La Lola, Oso Negro, and Ejutla early-stage exploration projects located in Mexico.
• Consideration Structure:
  • Total value: $450,000 in cash and $750,000 in shares of Zacatecas Silver.
  • Initial Payment (upon closing): $150,000 in cash and $300,000 in shares of Zacatecas Silver.
  • Remaining payments to be made over the next three years.
• Royalty Terms:
  • Heliostar retains a 2% Net Smelter Return (NSR) royalty.
  • Heliostar has the right to repurchase 1% of the royalty at any time prior to commercial production for $2 million.
• Closing Conditions: Expected to close on or before March 31, 2026, subject to customary conditions.
• Context: These properties have seen minimal exploration activity following Heliostar's acquisition of its production and advanced development assets but remain highly prospective.

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