IMPACT Silver Announces Option Agreement with J2 Metals Inc. on a Portion of Zacualpan S.E.

Core Viewpoint - IMPACT Silver Corp. has entered into a Letter of Intent with J2 Metals Inc. to option a portion of the Zacualpan Mining District, allowing J2 to explore the area known as the Sierra Plata Silver-Antimony Project over a three-year period [1][2]. Group 1: Agreement Details - J2 will conduct exploration on approximately 22 km² of the Zacualpan Mining District, with a definitive agreement expected to close within 60 days [1]. - J2 can earn a 100% interest in the property by making staged payments totaling $250,000 in common share subscription receipts and incurring approximately $1,353,600 in exploration expenditures over three years [3]. - The staged annual payments to IMPACT may total up to 6,500,000 common shares of J2, with up to 25% of the share value payable in cash or up to $375,000 in cash over three years [3]. Group 2: Responsibilities and Financial Terms - J2 is responsible for work requirements and taxes to maintain the property in good standing during the agreement [4]. - J2 has the option to accelerate cash payments and share issuances after the first year by paying an additional $500,000 in cash or shares [4]. - IMPACT will retain a 1.5% net smelter return (NSR) royalty on the project, which J2 can buy down to 0.75% for $1.5 million [5]. Group 3: Strategic Context - The agreement allows IMPACT to unlock additional value and exploration potential without deploying its own financial or human resources, especially in the context of record silver prices [2]. - The Sierra Plata area is located near the historically significant Taxco mining district, known for its long history of silver-gold exploration and production [2]. - IMPACT has previously conducted reconnaissance and limited exploration in the area, yielding encouraging results that highlight its standalone exploration potential [2].