Colibri Completes Sale of 49% Interest in Pilar for C$3.6 Million Plus 1% NSR

Colibri Resource Corporation has completed the sale of its 49% interest in the Pilar Gold Project in Sonora, Mexico, to Tocvan Ventures Corp. The total cash consideration for the transaction is C$3.6 million, structured with C$2.0 million received at closing and C$1.6 million due on the first anniversary.

Under the terms of the deal, Colibri retains a 1.0% Net Smelter Return (NSR) royalty on the project, which Tocvan may repurchase for C$1.0 million at any time. The company designated the proceeds to strengthen its balance sheet, provide working capital, and advance its wholly-owned EP Gold Project. This transaction closes the definitive agreement announced on July 9, 2026, and is subject to final TSX Venture Exchange acceptance.

Colibri Resource Corporation announced the transaction in July 2026, a timing that allowed the market to price in the expected cash infusion and strategic shift. The deal involves a C$3.6 million cash injection, which is highly material relative to the company’s sub-$3 million market capitalization and near-zero cash position of $6,734 as of Q3 2025.

Monetizing the minority Pilar stake removes the need to fund joint-venture exploration costs, allowing management to concentrate capital and technical resources on the 100%-owned EP Gold Project. Colibri retains a 1% NSR, preserving long-term upside without further capital expenditure, though the repurchase option at C$1.0 million caps the royalty's value unless Tocvan chooses not to exercise it. The news serves as a routine follow-up to a previously disclosed agreement. While financially beneficial, it does not introduce new exploration data or change the fundamental exploration-stage risk profile.

Colibri Resource Corporation is a micro-cap exploration company focused on gold and silver projects in Sonora, Mexico. Its flagship EP Gold Project comprises a 100%-owned, 4,766-hectare land package in the Caborca Gold Belt. Maiden Phase 1 reverse circulation drilling at the Plomo claims returned near-surface gold intercepts, including 7.5m @ 2.92 g/t Au and 30m @ 0.73 g/t Au. Mineralization was intersected in 18 of 22 holes, highlighting a ~1.2 km structural corridor.

The company also holds a 49% interest in the Pilar Gold & Silver Project, which is in an advanced exploration stage with over 25,000m of historical drilling. A third-party economic study by Atrium Research in September 2024 valued the 100% project at $145.2M USD NPV8, with Colibri's 49% share at $71.15M USD. Historical bulk sampling returned a 1.9 g/t Au head grade with 62% recovery.

Management is led by CEO Ian McGavney and Executive Chairman Ron Goguen, founder of Major Drilling Group. QP Mark Smethurst and CFO Camilla Cormier provide technical and financial oversight.