The TSX Venture Exchange has accepted for filing a disposition of all of the issued and outstanding shares of a wholly owned subsidiary of the company, pursuant to an agreement to suspend enforcement proceedings agreement, dated March 6, 2025, between the company, the subsidiary and an arm's-length party (the purchaser). The subsidiary is the 100-per-cent owner of the fully permitted for construction gold project located 140 kilometres east of the capital Zacatecas in the state of Zacatecas, Mexico, which consists of 30 mining concessions.

Pursuant to the terms of the agreement, the purchaser will issue 716,667 shares to the company and pay in aggregate $178,000 (U.S.) to complete the acquisition of the subsidiary. The purchaser will also suspend enforcement proceedings relating to the company's default under a loan facility dated June 24, 2020, which was later acquired by the purchaser, and settle the approximately $2,638,956 (U.S.) principal and interest owed as of Dec. 31, 2024, on the loan facility.

For further details, please refer to the company's news releases dated March 8, 2025, and July 3, 2025.