Prismo Metals to Advance Hot Breccia Toward Drilling Through Strategic Transaction

Executive Summary

• Prismo Metals entered a definitive assignment agreement to transfer all rights, interests, and obligations in its Hot Breccia copper project to Blade Resources.
• In exchange, Prismo will receive 6,755,000 Blade common shares (≈24% of Blade) plus a cash payment of $185,000; total consideration valued at approximately $2.36 million.
• The transaction is expected to close on or about March 2, 2026, positioning Prismo as Blade’s largest shareholder and providing continued upside exposure while allowing Prismo to focus on its other Arizona projects.

Key Details

• Transaction Structure: Assignment of Hot Breccia project; Prismo receives equity (6.755 M Blade shares) and cash ($185k).
• Equity Stake Post‑Closing: ~24% of Blade’s issued and outstanding common shares, making Prismo the largest single shareholder.
• Closing Timeline: Anticipated on or about 2 Mar 2026 (subject to mutual agreement).
• Cash Component: $185,000 payable at closing.
• Total Consideration Value: Approximately $2,364,250 (cash + equity).
• Board Representation: Prismo entitled to nominate one director to Blade’s board (nominee not yet determined).
• Future Equity Participation: Blade grants Prisma participation rights in future equity offerings to maintain its ownership percentage.
• Strategic Rationale:
• Leverages Hot Breccia investment into a significant stake in a company dedicated to advancing the project.
• Provides access to capital for drilling with limited dilution to Prismo shareholders.
• Allows Prismo to concentrate on Silver King, Ripsey Gold, and other projects.
• Enhances Blade’s attractiveness to strategic partners or majors.
• Potential Paths for Prismo’s Blade Stake: Long‑term hold, partial monetization to fund other projects, share distribution to shareholders, or a combination thereof.
• Early Warning Disclosure (NI 62‑103): Prismo will file the required early‑warning report; prior to this transaction Prismo held no Blade shares.

Notable Quotes

“Hot Breccia is one of the best copper exploration opportunities in North America… we have concluded that the best way forward for Prismo is to partner with Blade.” – Alain Lambert, CEO, Prismo Metals

“Blade’s principals and financial backers have a long history of raising significant capital for exploration programs of the scale required at Hot Breccia.” – Alain Lambert, CEO, Prismo Metals

“Walnut Mines strongly supports any initiative that advances Hot Breccia toward a serious drill program.” – Dr. Linus Keating, Manager, Walnut Mines LLC