Core Concept - Nord Precious Metals is evaluating a non-dilutive financing framework based on redeemable preferred shares to fund silver production at its Castle Silver Mine project, providing investors with direct claims on silver at production cost, secured by mine resources [1][3][14] Financing Structure - The proposed structure includes two classes of redeemable preferred shares: Class A for external investors and Class B for existing common shareholders, each representing a fixed quantity of silver deliverable upon production [2][4] - Class A shares will be priced based on Nord's estimated cost of silver production, allowing redemption for either physical silver or cash at the New York spot price [4][5] - Class B shares will allow existing common shareholders to convert their shares into preferred shares during a defined window prior to redemption, calculated using a specific formula [5][6] Security and Production Allocation - The financing will be secured by the 100%-owned Castle Silver Mine resource, providing dedicated single-asset security for investors [8] - A defined portion of Castle's silver production will be allocated to preferred share obligations, ensuring that the majority of production and revenue benefits common shareholders [9][10] Production Targets and Evergreen Structure - The redemption option for physical silver will be triggered by meeting specific production thresholds based on the finalized mine plan [11] - An "evergreen" provision may be included to allow for the extension of the program for subsequent production cycles, subject to regulatory approval [12] Regulatory Path and Next Steps - Implementation of the proposed financing structure requires board and shareholder approval, regulatory acceptance, and completion of definitive documentation [13][15] Company Overview - Nord Precious Metals operates a high-grade milling facility in Ontario and has a strategic position in silver discovery and recovery operations, with significant resources at the Castle property [17][18] - The company also maintains a portfolio of battery metals properties, enhancing its market position in both precious metals and critical minerals [19]

Core Viewpoint - Nord Precious Metals Mining Inc. has engaged multiple consultants for investor relations and promotional activities to enhance investor engagement and awareness of the company's operations and projects [1][2][3][4][5]. Group 1: Consultant Engagements - The company entered into a service contract with Departure Capital Inc. for promotional services, including long-form interviews and digital marketing, with a compensation of $25,000 [2]. - A service agreement was established with CanaCom Group for investor relations services, including a company awareness program and monthly articles, with a compensation of $95,000 [3]. - A master services agreement was signed with 3966 Ontario Inc. for marketing and promotional services across various social media platforms, with a compensation of $85,000 [4]. - Investor News was engaged for promotional services over a 12-month term, with a compensation of $25,000 [5]. Group 2: Company Operations - Nord Precious Metals operates the only permitted high-grade milling facility in the Cobalt Camp of Ontario, focusing on high-grade silver and strategic metals recovery [7]. - The company's flagship Castle property includes 63 square kilometers of exploration ground and has delineated 7.56 million ounces of silver in inferred resources, averaging 8,582 g/t Ag [7]. - The integrated processing strategy of the company supports the recovery of critical minerals such as cobalt and nickel, leveraging its proprietary Re-2Ox hydrometallurgical process [9]. - The company maintains a strategic portfolio of battery metals properties, including a 35% ownership in Coniagas Battery Metals Inc. and the St. Denis-Sangster lithium project [10].

Core Insights - Nord Precious Metals has achieved commercial high-grade silver concentrate from Beaver Mine tailings, with a concentration of 2,114.9 grams per tonne, indicating a significant concentration factor of 1,173% [2][5]. Testing and Results - The company utilized Falcon concentration technology, achieving a concentration of 2,114.9 g/t silver, while spiral technology yielded 1,268.6 g/t from head assays of 180.3 g/t and 205.8 g/t silver, representing concentration factors of 616-703% and 1,028-1,173% respectively [3][5]. - Previous sonic drilling in 2020 across 127 drill holes revealed tailings grades ranging from 13.7 g/t to 314 g/t silver, with an average of 79.0 g/t Ag, alongside other metals such as cobalt, copper, and nickel [4]. Processing Framework - The Ontario Ministry of Energy and Mines has confirmed that toll processing arrangements can be included in the Recovery Permit application, positioning the company's Temiskaming Testing Labs facility as a potential processing hub for legacy tailings in the Cobalt-Gowganda Camp [6]. - The company has engaged environmental consultants to assist with permitting steps and has maintained agreements with three First Nations groups to ensure community support [7]. Environmental and Operational Plans - The company plans to implement closed-loop water recycling protocols to meet regulatory scrutiny regarding water management [8]. - The commissioning of a 600 tonne-per-day modular gravity plant is scheduled to begin processing in 2026, contingent upon permit receipt [8]. Strategic Positioning - Nord operates the only permitted high-grade milling facility in the historic Cobalt Camp of Ontario, integrating high-grade silver discovery with strategic metals recovery operations [10]. - The company's multi-metal approach supports the recovery of critical minerals, including cobalt and nickel, while leveraging established infrastructure for both precious metals and battery materials [11].

Group 1: Cobalt Export Suspension and Market Impact - The cobalt export suspension from the Democratic Republic of Congo (DRC) will expire on October 15, having significantly impacted market prices, which have recovered over 60% since February [1] - The DRC, supplying over 70% of the world's cobalt, introduced the ban after prices fell to a nine-year low near $10 per pound in early 2025 due to oversupply and weaker demand from electric vehicle manufacturers [3] - Cobalt prices have rebounded sharply, with COMEX trading at around $16 per pound, and cobalt sulphate in China averaging $6,947 per ton in August, over 90% higher than at the start of the year [4] Group 2: New Quota-Based Export System - The DRC will replace the blanket ban with a quota-based system starting October 16, allowing miners to ship a maximum of 18,000 tons this year and 96,600 tons in each of 2026 and 2027 [2] - The DRC produced nearly 220,000 tons of cobalt in 2024, indicating a significant production capacity compared to the new quotas [2] Group 3: International Scrutiny and Political Context - The DRC's export strategy has drawn international scrutiny, with ongoing discussions about finalizing quotas among producers, complicated by the political situation and illegal mining funding rebel groups [6] - Glencore supports a quota system, while CMOC favors a full lifting of restrictions, highlighting differing interests among major producers [6] Group 4: Stockpiling and Strategic Moves - Both the US and China have been stockpiling cobalt, with China increasing reserves and the US Department of Defense securing 7,500 tons over five years to diversify supply sources [7] - The US Trade and Development Agency awarded funding for a feasibility study to expand the Kazozu copper-cobalt mine, potentially adding 25,000 tons of copper and cobalt concentrates annually [8] Group 5: Value of Cobalt in EV Batteries - The value of cobalt in electric vehicle batteries rose to $180 million in August, the highest since late 2022, with average cobalt content value per vehicle climbing back above $70, nearly double January levels [5]