ExGen Updates Silver Stream Agreement on Past-Producing Gold Mine

Core Viewpoint - ExGen Resources Inc. has signed a Silver Stream Agreement with Sol de Oro Mining Ltd. to purchase a significant portion of silver produced at the Andacollo Oro Gold Project in Chile, marking a strategic move towards becoming a high-growth streaming and royalty company [1][2][14]. Silver Stream Agreement - The agreement allows ExGen to purchase 66.67% of the silver produced at the Andacollo Oro Gold Project for 20% of the monthly average spot price of silver until 666,667 ounces are delivered, after which the percentage drops to 33.33% for further production [2][13]. - ExGen has made cash payments totaling US$1,000,000 as part of the agreement [13]. - Sol is required to deliver a minimum of 8,400 ounces of silver each calendar quarter starting from Q2 2027, with provisions for any shortfall to be compensated with gold [13]. Project Overview - The Andacollo Oro Gold Project is located in the Coquimbo Region of Chile and has a historical mineral resource estimate of 2.02 million ounces of gold, with inferred resources of 5.06 million ounces [5][6]. - The project has a history of production, having operated as a heap leach operation from 1998 to 2018, producing a cumulative 1.12 million ounces of gold [6][8]. - The project includes existing infrastructure, valid permits, and a skilled workforce, which could facilitate a quicker path to potential production [10][14]. Acquisition and Future Prospects - Galantas Gold Corporation has entered into a share purchase agreement to acquire Sol, thereby gaining control of the Andacollo Oro Project [4]. - The project has a substantial permitted footprint and includes mining concessions, land title, and water rights, which are critical for future development [4][10]. - ExGen's strategy focuses on reducing technical and financial risks while maintaining exposure to potential cash flow through its streaming and royalty model [16].