Prismo closes deal to increase Hot Breccia stake to 95%

Executive Summary

• Prismo Metals Inc. has completed the acquisition of an increased interest in its Hot Breccia copper project in Arizona, raising its stake from 75% to 95% through a transaction with Infinitum Copper Corp.
• The company has secured an irrevocable option to acquire Infinitum's remaining 5% interest, establishing a clear path to 100% ownership of the project.
• The transaction involved a cash payment of $185,000 to Infinitum and the assumption of existing obligations to Walnut Mines LLC, which were satisfied via the issuance of 450,630 common shares.

Key Details

• Transaction Structure: Prismo increased its interest in the Hot Breccia project from 75% to 95% by acquiring a 20% additional interest from Infinitum Copper Corp.
• Cash Consideration: Prismo paid Infinitum $185,000 to acquire the additional 20% interest.
• Share Issuance for Obligations: Prismo assumed Infinitum's remaining obligations under the option agreement with Walnut Mines LLC. These obligations were satisfied by issuing 450,630 common shares to Walnut Mines at a deemed issue price of 11 cents per share.
• Future Acquisition Option: Prismo obtained an irrevocable option to acquire Infinitum's remaining 5% interest. Prismo has agreed to pay Infinitum 5% of any consideration received if Prismo assigns its interest in Hot Breccia to a third party to facilitate this acquisition.
• Strategic Context: The transaction provides flexibility regarding milestone obligations under the option agreement with Walnut Mines LLC, aiming to advance a drill program for the project, which is located in Arizona's prolific copper belt.
• Capital Markets Update (Correction/Confirmation): The company confirmed details from a January 12, 2026, news release regarding a previous financing:
  • Issued 2.25 million units for gross proceeds of $225,000.
  • Each unit consisted of one common share and one common share purchase warrant.
  • Warrants entitle holders to purchase one share for 36 months at an exercise price of 17.5 cents.
  • Issued 140,000 finder warrants and paid $14,000 in finder commissions.
  • Intends to proceed with a final closing of 1.5 million units for gross proceeds of $150,000.

Notable Quotes

• Alain Lambert, CEO: "This transaction marks a significant milestone for Prismo and provides a clear mechanism to securing full ownership of Hot Breccia. It materially improves the strategic flexibility of the project."
• Alain Lambert, CEO: "Prismo remains firmly committed to advancing Hot Breccia... provides the company with additional flexibility as we evaluate a range of strategic alternatives. Each of these pathways' goal is to drill what we consider to be one of the most compelling copper exploration opportunities in Arizona and the broader United States."
• Dr. Linus Keating, Manager of Walnut Mines: "Walnut Mines is solidly in favour of any action that moves Hot Breccia closer to a serious drill program. We are hopeful that this transaction will accomplish that goal in 2026. In our opinion, this property remains one of the best copper exploration opportunities in North America."