Prismo Metals to increase Hot Breccia interest to 95%

Executive Summary

• Prismo Metals Inc. has entered into an agreement to increase its interest in the Hot Breccia copper project from 75% to 95% and secured an irrevocable option to acquire the remaining 5% interest, providing a clear path to 100% ownership.
• The transaction removes previous constraints on funding and partnership opportunities, allowing Prismo to pursue third-party partnerships and advance drilling activities.
• Prismo will pay $185,000 in cash (financed via third-party advance) and assume approximately $54,000 in share issuance obligations to Walnut Mines LLC to complete the acquisition.

Key Details

• Transaction Structure: Prismo increases interest in Hot Breccia from 75% to 95% and obtains an irrevocable option to acquire the remaining 5% held by Infinitum Copper Corp.
• Consideration:
  • Cash payment of $185,000 to Infinitum Copper Corp.
  • Assumption of remaining obligations under the option agreement to issue shares to Walnut Mines LLC, currently valued at approximately $54,000.
  • Shares to be issued to Walnut Mines at a deemed price of 11 cents per share, subject to adjustments at closing.
  • Prismo agreed to pay 5% of any consideration received if it assigns its interest in Hot Breccia to a third party.
• Financing: The $185,000 cash payment is financed through a third-party advance and will not utilize Prismo's working capital (which is earmarked for the Silver King project).
• Closing: Expected on or around January 16.
• Strategic Impact: CEO Alain Lambert states the transaction removes constraints on funding drilling and pursuing third-party partnerships, materially improving strategic flexibility.
• Project Context (Hot Breccia):
  • Located in Arizona's prolific copper belt, near major deposits like Freeport McMoRan's Miami-Inspiration, BHP's San Manuel, and Rio Tinto/BHP's Resolution.
  • Historical drilling (mid-late 1970s) intersected high-grade copper mineralization at depths of 640–830 meters.
  • Key historical intercepts include:
    • Hole OC-1: 23m at 0.54% Cu at 640m depth.
    • Hole OCC-7: 18m at 1.4% Cu and 4.65% Zn at 830m depth.
    • Hole OCC-8: 7.6m at 1.73% Cu and 0.11% Zn at 703m; 4.6m at 1.4% Cu and 0.88% Zn at 716m.
  • Geophysical and AI modeling identifies an anomalous target area measuring 1,100m by 1,150m.
  • Dr. Craig Gibson (Chief Exploration Officer) notes the target has features characteristic of porphyry copper deposits and plans to drill through the Paleozoic carbonate stratigraphy into the postulated porphyry body.
• Disclaimer: Historical assay results are unverified as core has been destroyed; data is not NI 43-101 compliant and is used only for exploration planning.

Notable Quotes

• Alain Lambert, CEO: "The absence of a clear mechanism to secure full ownership at Hot Breccia had previously limited our ability to fund drilling and pursue potential third party partnerships. The transaction announced today totally removes that constraint and materially improves the strategic flexibility of the project."
• Dr. Linus Keating, Manager, 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."
• Dr. Craig Gibson, Chief Exploration Officer: "The copper exploration target at Hot Breccia has geophysical, geochemical and geological features characteristic of many porphyry copper deposits. The project area has a regional setting similar to BHP-Rio Tinto's Resolution copper deposit... which is considered to be one of the greatest copper discoveries in the history of North American mining."