Mogotes issues 4.6M shares to Golden Arrow for Filo Sur

The most recent news, dated October 20, 2025, reports that Mogotes Metals Inc. (MOG) has issued 4,687,500 common shares to Golden Arrow Resources Corp. (GRG) for the Filo Sur project. This issuance is based on a 15-day VWAP (volume-weighted average price) of $0.32 per share, satisfying the previously announced $1.5 million deferred consideration for Golden Arrow's 100% interest in the Mogote project (part of Filo Sur). Additionally, Mogotes has granted Golden Arrow a 1.5% Net Smelter Return (NSR) royalty on the project, with an option for Mogotes to purchase 0.5% of the royalty for $2 million to reduce it to 1%. The news also mentions the grant of 640,000 stock options by Mogotes at an exercise price of $0.31 for a two-year term to its employees and consultants.

This news confirms the final closing of the option agreement initially announced on February 11, 2025, and further detailed in the March 26, 2025 news release regarding the initial closing.

This news is Routine - Positive. It represents the successful and expected conclusion of a key monetization event for a non-core asset, the Mogote project.

1. Valuation of Mogote Stake: The critical aspect is that Mogotes Metals' shares were valued at $0.32 based on VWAP for the share issuance. This is significantly higher than the minimum $0.1125 stipulated in the original agreement, indicating a healthy appreciation in the perceived value of Mogotes Metals and its Filo Sur project since the initial option terms were established.
2. Increased Asset Base: Golden Arrow now holds an approximate total of 24,401,785 common shares of Mogotes Metals (9M from private placement, 10.714M initial option shares, and 4.6875M from this final deferred payment). At the $0.32 VWAP, this equity stake is valued at approximately $7.8 million. This is a substantial asset for Golden Arrow, representing roughly 66% of Golden Arrow's current market capitalization (~$11.86M at $0.07/share).
3. Royalty Stream: Golden Arrow retains a 1.5% NSR royalty on the Mogote project, providing potential long-term, low-cost income exposure to a project now being advanced by a third party.
4. No Direct Dilution of GRG: This transaction provides significant value to Golden Arrow without further diluting its own shareholders. Instead, it adds a valuable equity holding in another company.
5. Context of Overall Strategy: This aligns with Golden Arrow's stated strategy of monetizing non-core assets to focus on its flagship San Pietro project and to generate non-dilutive capital and future revenue streams.

While positive, this news is "Routine" because it finalizes a previously announced agreement. It is not a "Game Changer" in the sense of a new major discovery or a massive financing from a strategic partner, but the favorable valuation of the MOG shares (>$0.1125 minimum) is a definite positive.

Golden Arrow Resources Corp. (TSXV: GRG) is a natural resource company focused on exploring and developing mineral projects, primarily in Chile and Argentina. The company's strategy involves advancing its core projects while monetizing non-core assets through option agreements to reduce capital expenditure and generate value.

Flagship Project: The San Pietro IOCG Project in Chile is Golden Arrow's primary focus. * Location: Located approximately 100 kilometers north of Copiapo, Chile, strategically positioned between Capstone Copper's Manto Verde mine property and Santo Domingo project, within a region known for Iron Oxide-Copper-Gold (IOCG) deposits. * Ownership: Golden Arrow's subsidiary, New Golden Explorations Chile SpA (NGE), holds 100% of the project, but Sociedad de Servicios Andinos SpA (SSA) has recently acquired approximately 25% of NGE's shares, providing $5 million ($2M cash, $3M services) to fund San Pietro's exploration. Golden Arrow effectively retains 75% interest in NGE. * Mineral Resource Estimate (MRE): An initial Inferred Mineral Resource Estimate was released in February 2025 (NI 43-101 filed April 2025), delineating 492 million tonnes at average grades of 0.23% Copper, 0.05 g/t Gold, 14.43% Iron, and 99 ppm Cobalt, for contained metal of 2.5 billion pounds of copper and 770,000 ounces of gold. * Recent Exploration: Ongoing exploration (Phase 2 drilling completed, Phase 3 planned) has identified significant new high-grade gold and copper targets, including Noemi and Lolita Norte, with surface samples yielding impressive gold grades (e.g., 10m @ 1.88 g/t Au, 3.0m @ 4.19 g/t Au and 2.08% Cu). The company also expanded its land package with the acquisition of the Cerro Sur concession, which has historic high-grade drilling results. * Royalties: Teck Resources Chile Limitada holds a 5% Net Profit Interest (NPI) on the minerals from the San Pietro Project.

Other Key Projects (Managed via Option Agreements): * Mogote Copper-Gold Project (Argentina): Optioned to Mogotes Metals Inc., Golden Arrow receives cash, shares in Mogotes Metals (now ~24.4 million shares), and retains a 1.5% NSR royalty. * Huachi Copper-Gold Project (Argentina): Optioned to Latin Metals Inc., involving staged exploration expenditures, cash payments, and potential for a 25% JV interest or 1% NSR royalty. * Caballos Copper-Gold Project (Argentina): Optioned to Hanaq Argentina S.A., with initial diamond drilling commencing in February 2025.