Metalsource signs option for North Carolina projects

Executive Summary

• Metalsource Mining Inc. has entered into a definitive option agreement to acquire 100% of Goldstrike Minerals LLC’s rights and interests in two mineral projects in North Carolina: the Silver Hill mine project and the Byrd-Pilot project.
• The transaction involves an aggregate consideration of $250,000 in cash and 15 million common shares, payable in yearly installments over two years, plus a $1-million exploration and development commitment over the same period.
• The acquisition provides Metalsource with exposure to a historic silver producer (Silver Hill) and a large-scale gold-copper porphyry system (Byrd-Pilot) in a top U.S. jurisdiction, subject to conditions including a $2-million private placement raise.

Key Details

• Target Assets:
  • Silver Hill Project: 1,128 acres in Davidson County, NC. America's first significant silver discovery and first commercial silver producer. Historic mineral inventory of 347,422 tonnes grading 23.7 g/t Ag, 2.17 g/t Au, 0.20% Cu, 2.55% Pb, and 7.89% Zn. Recent surface sampling (SH25-003) returned 444 g/t Ag, 17.7 g/t Au, 8.61% Pb, and 0.507% Zn.
  • Byrd-Pilot Mountain Project: 1,032 acres in Randolph County, NC. Features a large alteration footprint with silicification and advanced argillic alteration. Positive RC drill results include 27.4 metres of 0.9 g/t gold from 24.4 metres.
• Transaction Consideration:
  • Cash: Aggregate $250,000, paid in yearly installments over two years.
  • Equity: 15 million common shares issued to Goldstrike, paid in yearly installments over two years.
  • Exploration Commitment: $1,000,000 committed for exploration and development over two years.
  • Acceleration: Metalsource may accelerate the exercise of the option at any time by issuing all consideration shares and making all cash payments immediately.
• Conditions Precedent:
  • Completion subject to conditions within 120 days of Sept. 11, 2025.
  • Must raise at least $2,000,000 via a separate private placement.
  • Regulatory approvals from the Canadian Securities Exchange and other authorities.
  • Satisfactory due diligence and board approvals.
• Share Restrictions: Consideration shares subject to a hold period of four months and one day after issuance.
• Exclusivity: Restrictions on both parties acquiring other mineral rights in North Carolina outside the specific projects.

Notable Quotes

• "This acquisition is truly transformational for Metalsource Mining. Silver Hill presents a compelling silver growth story -- with historic pods of high-grade mineralization that have never been tested with modern drilling, we see significant potential to unlock value. At the same time, Byrd-Pilot offers large-scale discovery potential within a gold-copper porphyry system that has only been shallowly explored." — Joe Cullen, Chief Executive Officer