Questcorp and Riverside Update Substantial Drilling Progress at the LA Union Gold and Silver Project with Seven Holes Completed at Four Targets

The most recent news, from October 16, 2025, provides an update on Questcorp Mining Inc.'s maiden drilling program at the La Union gold and silver project in Sonora, Mexico, being conducted in partnership with Riverside. The program is reported to be "two-thirds complete," "on track," and "on budget."

Key highlights from the drilling progress include: * Seven holes have been completed to date, exceeding the initial plan of four to six holes. * Four of the five main target zones (Union Mine, Famosa, North Union, and El Cobre) have been tested with at least one hole. * At the Famosa target, a grab sample from a dump revealed high-grade mineralization with 59.4 g/t gold and 833 g/t silver. A cautionary note indicates that grab samples are selective and may not be representative of overall mineralization. * Future plans include an additional two to five holes, targeting extensions at the existing zones, one hole at El Creston, and initial drilling at newly generated targets to the west, focusing on feeder zones along pre-mineral fault structures. * Post-campaign work will involve integrating assay results, continuing surface programs, additional Induced Polarization (IP) surveys, and refining geological interpretations. * CEO Saf Dhillon acknowledged a slower start and a pause due to heavy rains but highlighted the "substantial progress" made by the Riverside team and subcontractors.

Preceding this, on October 6, 2025, Questcorp Mining announced a revised non-brokered private placement aiming to raise up to $3,500,000. The offering consists of two types of units: * Accredited Investor (AI) Units: Up to 7,500,000 units at $0.20 per unit, each comprising one common share and one-half common share purchase warrant. Each whole warrant is exercisable at $0.30 for 24 months, with an accelerated expiry clause if shares trade at or above $0.50 for 10 consecutive trading days. These shares are subject to a 4-month-and-one-day hold period. Maximum proceeds from AI Units are $1,500,000. * Listed Issuer Financing Exemption (LIFE) Units: Up to 11,111,112 units at $0.18 per unit, each comprising one common share and one-half common share purchase warrant. Each whole warrant is exercisable at $0.24 for 24 months, with no accelerated expiry. These shares are not subject to a hold period. Maximum proceeds from LIFE Units are $2,000,000.

The proceeds from this financing are intended for exploration and drill work at the La Union gold and silver project, upcoming exploration at the North Island copper property, and general working capital. A UK-based institutional investor, Sorbie Bornholm LP, is expected to participate. The offering is subject to regulatory approvals.

Note: The news release from Global X on 2025-10-07 regarding ETF management fee reductions is not relevant to Questcorp Mining Inc. and will not be included in this analysis.

The drilling update on the La Union project (October 16, 2025) provides positive operational news, indicating that the maiden program is progressing as planned ("on track and budget") despite initial weather-related delays. Completing seven holes, exceeding the initial target, and testing most of the main targets is a good sign of efficiency and commitment. The grab sample from Famosa, while not a drill intercept and subject to cautionary notes, suggests the presence of high-grade mineralization, which could be an encouraging indicator for future drill results.

However, the lack of assay results from the current drilling remains a critical unknown. The real "material impact" will hinge on these results, which are anticipated as part of the "post-campaign work." Until then, the news represents good process management but does not confirm economic viability or significant discovery.

Crucially, this drilling progress news arrives shortly after the announcement of a private placement (October 6, 2025) that is now significantly "out of the money" compared to the market price. The stock closed at $0.18 on the day the financing was announced, but had dropped to $0.14 by October 15, the day before the drilling update. The LIFE units were priced at $0.18 and AI units at $0.20. This substantial discount of the market price to the offering price poses a considerable risk to the successful closing of the private placement. If the financing doesn't close as planned, the company will face an immediate capital shortfall, impacting its ability to fund ongoing exploration at La Union and the planned work at North Island.

Therefore, while the drilling progress is operationally positive, its materiality is significantly dampened by the preceding negative market reaction to the financing, which casts a shadow over the company's financial stability and ability to continue its exploration programs without further (potentially dilutive) adjustments to the financing terms. The news, in isolation, is positive, but in context, it's overshadowed by funding concerns, leading to a "Routine - Neutral" rating.

Questcorp Mining Inc. is a mineral exploration company focused on developing its gold and silver projects. Its flagship project, La Union, is located in Sonora, Mexico, and is being advanced through a partnership with Riverside. The project is currently undergoing a maiden drilling program targeting gold and silver mineralization. The company also mentions the North Island copper property, which is slated for upcoming exploration work.