San Lorenzo GOLD Announces Entering into an Advisory Engagement with Argonaut, a Proposed Private Placement and Provides a Salvadora Drilling Update
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SAN LORENZO GOLD ANNOUNCES ENTERING INTO AN ADVISORY ENGAGEMENT WITH ARGONAUT, A
PROPOSED PRIVATE PLACEMENT AND PROVIDES A SALVADORA DRILLING UPDATE
CALGARY / December 11, 2025 / San Lorenzo Gold Corp. ("San Lorenzo" or the "Company") (TSXV: SLG)
is pleased to advise that, subject to the approval of the TSX Venture Exchange (the " Exchange"), it has
entered into an advisory engagement agreement with Argonaut Corporate Finance Limited which is part
of Argonaut Limited (“ Argonaut”) one of Australia’s leading natural resources focused investment
banking, funds management and stockbroking firms.
San Lorenzo is also pleased to announce that it intends to complete a non-brokered best-efforts private
placement and that Argonaut and Argonaut Funds Management (“ Argonaut Group”) will participate as
the cornerstone investors.
Advisory Engagement with Argonaut
The advisory engagement with Argonaut is for an initial term of six (6) months, is extendable by mutual
agreement and provides that Argonaut will serve as San Lorenzo’s strategic financial advisor and provide
guidance on exploration efforts and their interpretation on the Salvadora Gold/Copper project, together
with San Lorenzo’s other properties Punta Alta and Nancagua, located in Chile. The engagement is the
result of due diligence conducted by Argonaut, together with management of San Lorenzo. Due diligence
pertained to San Lorenzo’s flagship Salvadora property in the mega-porphyry belt of northern Chile.
Argonaut will receive compensation payable at a rate of $5,000/month for the initial term and will be
granted 1,000,000 warrants (“ Advisory Warrants ”) with each Advisory Warrant entitling Argonaut to
acquire a common share of San Lorenzo (“ Common Share”) at a price of $0.80 for a period of two (2)
years.
Argonaut has raised ~A$3.1bn in natural resources in the last twelve months. Its advisory and equity
capital markets business is underpinned by extensive institutional relationships, well-respected research
coverage and strong financial and technical in-house capabilities.
Private Placement
The Company announces that it intends to complete a non-brokered best-efforts private placement of
units (“Units”) of the Company for gross proceeds of up to $4,000,000 (the “Offering”). Each Unit will be
priced at $0.62 and will consist of one Common Share and one-half of a Common Share purchase warrant
(“Warrant”). Each full Warrant will entitle the holder to acquire an additional Common Share at a price
of $0.80 for a period of two (2) years from the date of issuance. The Warrants contain an acceleration
clause whereby the Company may accelerate expiry of the Warrants to a date that is sixty (60) days
following the date upon which the Company’s Common Shares trade at a volume weighted average
trading price exceeding $1.10 per Common Share. The Argonaut Group will participate in the Offering, as
the cornerstone investor, for a total of $2,000,000.
San Lorenzo may pay a cash commission or finder's fee to qualified non-related parties of up to 6% of the
gross proceeds of the Offering payable in cash (“Broker Fee”) together with warrants representing 6% of
the Common Shares issued in connection with the Offering (“Broker Warrants”). Each Broker Warrant will
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entitle the holder to purchase one additional Common Share at a price of $0.80 for a period of 12 months
following closing of the Offering. Argonaut will waive its entitlement to Broker Warrants associated with
Argonaut Group’s lead-order subscription and will only be paid the Broker Fee in respect of the Offering.
The proceeds of the Offering will be used to continue exploration efforts on San Lorenzo’s flagship
Salvadora property as well as for general working capital purposes including the expenses of the Offering.
There is no minimum Offering and insiders may participate. All securities issued pursuant to the Offering
will be offered to “accredited investors”, as defined under National Instrument 45-106 – Prospectus
Exemptions, or other qualified investors under other prospectus exemptions and will be subject to a
statutory hold period of four (4) months and one (1) day following the closing date of the Offering in
accordance with applicable Canadian securities laws and the policies of the Exchange.
Commenting on the advisory engagement and financing, Argonaut Executive Chairman, Eddie Rigg
commented:
“Argonaut is delighted to be cornerstoning the Offering and accepting the advisory engagement. We scour
the globe seeking to identify world class projects that are underappreciated and mis-priced. We have
completed separate technical reviews with our in-house geologists. We are convinced Salvadora has the
strong potential to host a multi-million ounce gold resource.“
Commenting on the advisory engagement and proposed financing, Al Kroontje, San Lorenzo’s CEO
commented:
“We are pleased to have Argonaut’s support and look forward to their continued involvement with San
Lorenzo as the Company continues the evaluation and interpretation of ongoing drilling, IP and surface
geo-chem efforts at Salvadora. Drilling is ongoing on this exciting project. At the suggestion of numerous
stakeholders, together with the fact that the existing (second) credit facility will not provide sufficient
funding of much warranted continuous drilling at Salvadora, management has determined that it is in the
best interests of our stakeholders to complete a financing that will enable drilling to continue well into
2026.”
Conversion of Credit Facilities
In connection with the Offering, Tailwind Capital Neo Fund Ltd. (“ Tailwind”), a company associated with
San Lorenzo’s CEO and a director, has agreed to convert all advances made under two previously
announced credit facilities into Common Shares pursuant to the conversion terms contained in the
originating loan agreements. The first credit facility was provided to enable San Lorenzo to complete the
impactful drilling program that occurred between December 2024 and February 2025. The second credit
facility was provided to allow the drilling program currently underway to commence. The first credit
facility, which automatically converted into a term loan maturing on November 30, 2026, when the
maximum draw was made, will involve the conversion of $1,000,000 of outstanding advances at $0.20
per Common Share. In the case of the second facility, all amounts advanced under that facility, of which
$235,190 is currently drawn, will be converted at $0.35 per Common Share such that upon closing of the
Offering, no advances will be outstanding under either of the two facilities with Tailwind.
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Repayment of Term Loan
The outstanding Term Loan in favor of Lithium Chile Inc. (“Lender”) in the principal amount of $1,000,000,
plus accrued interest of approximately $240,000 (“the Indebtedness”), will be satisfied through the
Lender’s being issued Units for fifty percent (50%) of the Indebtedness at the Offering price of $0.62 per
Unit and the remaining fifty percent (50%) of the Indebtedness will be repaid in cash from the proceeds
of the Offering.
Drilling Update
San Lorenzo is pleased to advise that it is currently drilling a fourth hole on its Cerro Blanco porphyry
target. Initial mechanical problems with the drilling rig have been rectified such that results are now
expected to be received during January 2026.
About San Lorenzo
San Lorenzo is focused on advancing its flagship Salvadora property located in Chile’s mega-porphyry belt.
Results obtained from prior drilling programs conducted on 4 different targets have convinced
management that several significant gold and copper enriched epithermal and porphyry style systems are
contained within the Salvadora property.
For further information, please contact:
Terence (Terry) Walker, VP Exploration
Email: [email protected]
Ph: + 56 9 5179 5902
Or:
Roger Blair or Jeff Wilson, Acuity Advisory Corp.
Email: [email protected]
Ph: +1 604 351 0025 or +1 604 837 5440
Or:
Al Kroontje
Email: [email protected]
Ph: +1 403 607 4009
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news
release.
Cautionary Note Regarding Forward-Looking Information
This news release may contain forward-looking information that involves substantial known and unknown risks and uncertainties,
most of which are beyond the control of San Lorenzo, including statements related to the term of the advisory agreement with
Argonaut, the use of proceeds of the Offering, the conversion of the credit facilities [and Term Loan], the approval of the Exchange
to the advisory engagement with Argonaut and the Offering, and the timing for the drilling results at Cerro Blanco. All statements
included herein other than statements of historical fact are forward-looking information. Such forward-looking information
involves various risks and uncertainties. There can be no assurance that such information will prove to be accurate, and actual
results and future events could differ materially from those anticipated in such information. Any forward-looking statements are
made as of the date of this release and, other than as required by applicable securities laws, San Lorenzo does not assume any
obligation to update or revise them to reflect new events or circumstances.