Omineca enters MOU with PSI for Fraser Canyon

Executive Summary

• Omineca Mining and Metals Ltd. has signed a Memorandum of Understanding (MOU) with PSI Group to fully finance the exploration, development, and operations of the Fraser Canyon placer gold project.
• Under the agreement, PSI assumes 100% of the capital and operating expenditures in exchange for a 75% share of recovered metals, while Omineca retains a 25% zero-cost carried interest.
• The partnership aims to initiate trial mining and placer gold recovery by the fourth quarter of 2026, utilizing modern road header technology for underground excavation.

Key Details

• Transaction Structure: PSI Group provides full financing for all costs associated with exploration, development, engineering, mining, and operating capital.
• Revenue Share: PSI receives a 75% share of recovered metals from placer operations; Omineca retains a 25% zero-cost carried interest.
• Earn-In Provisions: PSI has the ability to earn an up-to-50% ownership interest in each of the three project components (South Placer, North Placer, and mineral exploration) through performance-based milestones.
• Timeline:
  • Notice of Work (NOW) submission targeted for Q1 2026.
  • Trial mining operations targeted to begin by Q4 2026, subject to permitting and regulatory approvals.
• Operational Plan:
  • Data review and engineering for South Placer and North Placer properties.
  • Submission of a Notice of Work for permitting and site preparation.
  • Underground 300-metre test mining bulk sample operation at South Placer.
  • Development of a formal mine plan for concurrent mining of North and South placer areas.
  • Investigation of underlying mineral claims for potential lode gold occurrences via groundwork, sampling, geophysics, and exploration drilling.
• Technology: PSI will utilize modern technologies, specifically multiple road headers (advanced, self-propelled rock-cutting machines), to shorten excavation time compared to conventional drill-and-blast methods. A presorting and gold recovery operation underground is planned to allow for continuous mining and processing year-round.
• Historical Context: The Fraser Canyon property includes the historic Canyon mine (1986) and Tertiary mine (1907-1917), which collectively produced 1,482 ounces of raw placer gold. In 1986, the Canyon mine produced 421.634 troy ounces of refined gold and 40.342 troy ounces of silver from 9,932 loose cubic yards of pay gravels.
• Parties: Omineca Mining and Metals Ltd. (Landowner) and PSI Group (Strategic Partner/Financier).

Notable Quotes

• "PSI Mining is pleased to have partnered with Omineca to recommence mining operations at Omineca's historic Fraser Canyon property," commented Dr. Curtis Bertholet, PEng, president and chief executive officer of PSI Mining.