Chesapeake Gold Completes Sale of Tatatila Project for 14.99% of Mexican Gold

Executive Summary

• Chesapeake Gold Corp. completed the sale of its Tatatila gold‑copper project in Veracruz, Mexico to Mexican Gold Mining Corp.
• As consideration, Chesapeake received 4,451,361 common shares of Mexican Gold (≈15% of outstanding shares) and a 1.5% net smelter return royalty on the project.
• The consideration shares are subject to a lock‑up schedule releasing 25 % semi‑annually over 2½ years, with Chesapeake agreeing to vote the shares per Mexican Gold’s instructions during that period.

Key Details

• Transaction Completion: Sale of Tatatila project closed on November 12 2025.
• Consideration Shares: 4,451,361 common shares of Mexican Gold Corp., representing 14.99 % of its outstanding common equity on an undiluted basis.
• Royalty: 1.5 % net smelter return royalty granted to Chesapeake; Mexican Gold may repurchase 0.5 % of the royalty for US$500,000 within ten years, reducing it to 1.0 %.
• Lock‑Up Terms: Shares subject to statutory four‑month plus one‑day hold period and an additional lock‑up. Starting one year after issuance, 25 % of shares are released every six months; full release occurs 2½ years after issuance.
• Voting Agreement: Chesapeake will vote the consideration shares in accordance with Mexican Gold management instructions for the same 2½‑year period.
• Future Actions: Chesapeake may acquire additional Mexican Gold securities or dispose of its holdings based on market conditions and strategic considerations.
• Regulatory Filing: An early warning report related to the transaction will be filed on SEDAR+.

Notable Quotes

(No direct quotes were provided in the release.)