Scorpio receives first deferred payment from MRG sale

Executive Summary

• Scorpio Gold Corp. received the first tranche of the escrow holdback ($750,000 USD) from the sale of its subsidiary Mineral Ridge Gold LLC, bringing total cash received to date to $2.25 million USD from the $7.5 million transaction.
• The company confirmed that all conditions for the first escrow release were satisfied, with the remaining $750,000 USD expected on the nine-month anniversary and the final $1 million USD payment on the 12-month anniversary of the closing.
• The CEO stated the funds reinforce the balance sheet to support a 50,000-metre drill program at the Manhattan district, while the company also announced a change in corporate secretary.

Key Details

• Transaction Context: Sale of wholly owned subsidiary Mineral Ridge Gold LLC (MRG) to an arm's-length purchaser.
• Total Consideration: $7.5 million USD.
• Escrow Structure: $1.5 million USD placed in escrow as an indemnification holdback.
• First Payment Received: $750,000 USD (50% of escrow) released and paid to Scorpio Gold.
• Remaining Escrow: $750,000 USD expected to be released on the nine-month anniversary of closing.
• Final Payment: $1 million USD expected on the 12-month anniversary of closing.
• Use of Proceeds: To reinforce balance sheet and fund a 50,000-metre drill program at the Manhattan district to step out and expand the scale of the district.
• Manhattan District Resource Data:
  • Goldwedge and Manhattan Pit Areas: 18,343,000 tonnes grading 1.26 g/t Au for 740,000 oz contained gold (Inferred category).
  • Historical MRE (Black Mammoth, April Fool, Hooligan, Keystone, Jumbo): 1,652,325 tonnes grading 5.89 g/t Au for 303,949 oz contained gold.
  • Deposit Type: Low-sulphidation, epithermal, gold-rich system.
• Corporate Governance Change:
  • Diana Mark retiring as Corporate Secretary effective Dec. 3, 2025.
  • Stephanie Sharma appointed Corporate Secretary effective Dec. 3, 2025.
  • Sharma has experience with TSX, Cboe, TSXV, and CSE listed issuers.

Notable Quotes

• "The initial escrow release from the sale of Mineral Ridge reinforces our balance sheet and further contributes to Scorpio's already strong treasury position as we ramp up our currently under way 50,000-metre drill program that aims to step out and expand the scale of the Manhattan district. With a fortified treasury and a clear exploration mandate, we are moving into 2026 with the ability to advance Manhattan aggressively and with conviction," said Zayn Kalyan, chief executive officer and director of Scorpio Gold.