Prismo Metals Closes Acquisition of Increased Interest in Hot Breccia

Executive Summary

• Prismo Metals increased its ownership in the Hot Breccia copper project from 75% to 95% by paying $185,000 to Infinitum Copper and issuing 450,630 common shares to Walnut Mines.
• The company secured an irrevocable option to acquire the remaining 5% held by Infinitum, positioning Prismo for potential 100% ownership.
• Prismo announced a financing of 2,250,000 units for $225,000 (including 140,000 Finder’s Warrants) and plans a final closing of an additional 1,500,000 units for $150,000.

Key Details

• Ownership Change: Interest in Hot Breccia raised to 95%; option retained for the remaining 5% to achieve full control.
• Purchase Price: $185,000 paid to Infinitum for an additional 20% stake.
• Share Issuance to Walnut Mines: 450,630 common shares issued at a deemed price of $0.11 per share to satisfy existing option obligations.
• Future Consideration Clause: Prismo will pay Infinitum 5% of any consideration received if Prismo assigns its Hot Breccia interest to a third party and acquires Infinitum’s remaining 5%.
• Financing – Units Issued: 2,250,000 units sold for gross proceeds of $225,000. Each unit consists of one common share and one warrant (exercise price $0.175, exercisable for 36 months).
• Finder’s Warrants & Commissions: 140,000 Finder’s Warrants issued; finder commissions paid totaled $14,000.
• Planned Additional Closing: Intent to close a final tranche of 1,500,000 units for gross proceeds of $150,000.
• Strategic Rationale (CEO Quote): “This transaction marks a significant milestone… it materially improves the strategic flexibility of the project.”

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.”
• Dr. Linus Keating, Manager of Walnut Mines LLC: “Walnut Mines is solidly in favor of any action that moves Hot Breccia closer to a serious drill program… this property remains one of the best copper exploration opportunities in North America.”