Xali Gold Agrees to Transfer the El Oro Tailings Project in Mexico to Kappes, Cassiday

Core Viewpoint - Xali Gold Corp. has reached an agreement with Kappes, Cassiday and Associates (KCA) to finalize a Definitive Agreement for the transfer of rights related to the El Oro Tailings Project in Mexico, which is expected to enhance the development and operation of the tailings reprocessing facility [1][2][3]. Agreement Details - The Definitive Agreement will allow KCA to process and sell all gold and silver recovered from the tailings, with Xali Gold receiving a gross royalty of 4% of sales income, subject to certain conditions [3]. - KCA has the option to purchase 1% of the royalty for US$1,000,000, which would reduce the gross royalty owed to Xali Gold [3]. - KCA will assume all payments and taxes related to the tailings, relieving Xali Gold of these responsibilities [3]. Financial Terms - The LOI signed in April 2024 outlines staged payments totaling $150,000 within six months, followed by a minimum royalty payment of US$50,000 every six months until production begins [4]. - KCA has already paid Xali Gold $200,000 to date [4]. Project Specifications - The El Oro Tailings Project is estimated to contain 1.27 million tonnes of tailings with a grade of 2.94 grams per tonne gold and 75.12 grams per tonne silver, translating to approximately 119,900 ounces of gold and 3,061,200 ounces of silver [6]. - KCA's drilling program has confirmed the uniformity of gold and silver content in the tailings, with potential increases in resource size and grades [8][9]. Recovery Estimates - KCA estimates recoveries of up to 82% for gold and 86% for silver, although for economic calculations, recoveries of 78% for gold and 86% for silver will be used [9].