NGEx Reports Q2 2025 Results; Porphyry and High-grade Gold Discoveries at Lunahuasi; Plan to Spin-out Royalties to Shareholders
NGEx Minerals Ltd.
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NGEXminerals.com
NGEx Reports Q2 2025 Results;
Porphyry and High-grade Gold Discoveries at Lunahuasi; Plan to Spin-out Royalties
to Shareholders
August 11, 2025, Vancouver, British Columbia – NGEx Minerals Ltd. (“NGEx Minerals” “NGEx” or the
“Company”) (TSX: NGEX) (OTCQX: NGXXF) is pleased to report its results for the three and six months ended
June 30, 2025.
Highlights for three months ended June 30, 2025 (“Q2 2025”) and the subsequent period thereto, include the
following, details of which are discussed later in the release:
- Highly successful Phase 3 drill program continued to grow the Lunahuasi deposit. The Company
successfully completed 25,003 metres of drilling in 24 holes during the Phase 3 drill program, confirming
two significant new discoveries:
Major new copper-gold porphyry system – Drillhole DPDH027 confirmed the presence of a predicted
copper-gold porphyry system at Lunahuasi, adjacent to the high -grade copper -gold-silver high -
sulphidation vein structures that were initially discovered at the project. The porphyry discovery opens
an entirely new dimension to the project, comprising a very large-scale exploration target which holds
the potential to significantly increase Lunahuasi’s long-term value.
Quartz veins with high-grade visible gold – Drillhole DPDH046 intersected two separate quartz veins
containing ultra high-grade free gold. This new style of mineralization is rarely seen in high-sulphidation
epithermal deposits but has accounted for a significant portion of the value at successful projects
developed worldwide where it is present , such as the El Indio mine located 150 kilometres to the
southwest. The exceptional gold grades intersected thus far suggest that substantial additional value
creation may be possible with in only a relatively small, mineralized volume, which greatly increases
the gold potential of the Lunahuasi deposit. The full extent of this new style of mineralization has not
yet been defined, and the Company will prioritize , among other things, follow-up drilling to test this
exciting new exploration target in the upcoming program.
- NGEx plans to spin -out royalties on its flagship assets to shareholders. On July 22, 2025, the Company
announced its intention to spin-out net smelter return (“NSR”) royalties on its Lunahuasi and Los Helados
Projects, that will be held by a wholly-owned subsidiary of NGEx (“RoyaltyCo”) by way of a statutory plan
of arrangement under the Canada Business Corporations Act (the “Arrangement”). If all requisite
approvals are obtained, including those required from NGEx sha reholders and the Toronto Stock
Exchange, each shareholder of NGEx will receive 1/4 of a share of RoyaltyCo for each share of NGEx held
as of the Share Distribution Record Date (as defined below) and NGEx will retain a 19.9% interest in
RoyaltyCo. RoyaltyCo intends to apply to list its shares on the TSX Venture Exchange (the “TSXV”) following
completion of the Arrangement. Such listing will be subject to it fulfilling all of the listing requirements of
the TSXV. The creation and spin -out of RoyaltyCo is designed to allow NGEx Shareholders to capture
additional long-term value from the Lunahuasi and Los Helados projects through the royalties, while NGEx
continues to focus on advancing the projects through further exploration efforts.
Wojtek Wodzicki, President and CEO, commented, “We take great pride in the outstanding value that NGEx and
its predecessors have unlocked and delivered to shareholders over the years through successful exploration and the
execution of thoughtful corporate transactions including past spin-outs that have created tremendous value for our
shareholders. Our work during this past quarter is the latest example of this continuing endeavor. Phase 3 drilling
at Lunahuasi has been a resounding success, with the final assays of the program confirming two new discoveries,
each having the potential to further augment what is already a remarkable deposit: a copper-gold porphyry system
and a new zone of quartz veins hosting ultra high-grade free gold. This past season of drilling at Lunahuasi has
reconfirmed the unique nature of the deposit, which continues surprising to the upside, and we are eager to get
back into the field in October to follow up on the findings of the recent campaign.
On the corporate front, we are advancing the previously proposed spin-out of royalty assets on Lunahuasi and Los
Helados. If completed, the Arrangement will continue to give shareholders exposure to our keystone assets in the
emerging Vicuña District, while also providing a ground level opportunity to participate in a new and exciting
investment opportunity in the royalty space that will be led by an experienced leadership team, that we have begun
to assemble, with a mandate to grow and diversify its portfolio.”
Q2 2025 Operating Highlights and Outlook
Successful Phase 3 Lunahuasi Program Results in Two New Discoveries
The Company successfully completed its Phase 3 drill program at Lunahuasi, located in San Juan, Argentina, in
early May 2025, with 25,003 metres completed in 24 holes, including three geotechnical holes designed to
support the Company’s analysis of a conce ptual underground exploration adit at Lunahuasi. The final assays
from the Phase 3 program were released by the Company on July 8, 2025.
The program accomplished its main objectives of testing the Lunahuasi deposit at three target scales:
• Long-range exploration holes (+300m spacing) were big step-outs that tested for significant extensions of
mineralization to the north, south, and west;
• Mid-range step out holes (50-300m spacing) explored for extensions of the mineralized zone in all
directions and started to fill in large gaps in the drill pattern; and
• Short-range infill holes (30-50m spacing) tested the short-range variability of mineralized structures and
high-grade zones and confirmed the main structural orientations.
Throughout the Phase 3 campaign, drillholes at all three target scales consistently intersected high-grade vein-
hosted mineralization across considerable widths and significantly contributed to improvements in the geological
understanding of the structures that form the original Lunahuasi discovery, which continue to be the near-term
exploration priority at the project. The final assay results from the Phase 3 program confirmed the discovery of a
new copper-gold porphyry system at Lunahuasi (see News Release dated May 21, 2025) and the discovery of a
third, distinct type of mineralization at the project with ultra high-grade visible gold in quartz veins (see News
Release dated July 8, 2025).
Drillhole DPDH027 was drilled across the high-sulphidation epithermal structures before discovering a new zone
of porphyry copper-gold mineralization at approximately 1,262 metres downhole. The hole was drilled to a final
depth of 2,005 metres, where it ended in mineralization, returning 1,619.4 metres at 0.87% copper equivalent
(“CuEq”) (0.52% Cu, 0.32 g/t Au, 13.2 g/t Ag) including a porphyry intersection of 743.00 metres at 0.56% CuEq
(0.44% Cu, 0.13 g/t Au, 2.3 g/t Ag), which included:
• 18.00 metres at 2.68% CuEq (2.46% Cu, 0.18 g/t Au, 10.3 g/t Ag); and
• 17.80 metres at 1.23% CuEq (1.01% Cu, 0.24 g/t Au, 5.5 g/t Ag).
While the full scale of the Lunahuasi porphyry system remains unknown, another Phase 3 drillhole, DPDH029,
ended in argillic alteration associated with the high-sulphidation system overprinting early porphyry veins, some
500 metres south of the intersection in DPDH027, illustrat ing the size potential of the porphyry discovery.
Importantly, this discovery has opened up an entirely new dimension to Lunahuasi and significantly increases the
long-term potential of the project.
Drillhole DPDH046 resulted in the discovery of ultra high-grade free gold in quartz veins, which is a new style of
mineralization at Lunahuasi. Highlights include:
• 2.20 metres at 142.27 g/t Au from 467.10m, plus
• 3.60 metres at 245.39 g/t Au from 520.00m
The discovery of this third distinct style of mineralization at Lunahuasi is potentially transformative for the project,
as several renowned mines around the world have been built around high-grade gold quartz veins. While the size
and extent of the quartz veins have yet to be confirmed, the remarkably high-grades observed in DPDH046 allude
to the possibility that a relatively small volume of this gold-dominant mineralization could add a substantial amount
of value to Lunahuasi. Following up on this third Lunahuasi discovery will be a key objective of the Company’s
upcoming Phase 4 drill program.
The Company is now completing its analysis of the geological data collected during the Phase 3 campaign and
refining the geological model at Lunahuasi. Planning for the Company’s upcoming Phase 4 exploration program
at Lunahuasi is well advanced, with a start date currently anticipated for around October 2025.
Further details, such as the copper equivalent formula, can be found in the “Qualified Persons and Technical
Notes” section of this news release.
Proposed Spin-out of NSR Royalties on Lunahuasi and Los Helados
The Company has caused a royalty purchase agreement to be entered into between a newly incorporated,
wholly-owned subsidiary (“RoyaltyCo”) and the subsidiary that currently holds the Nacimiento I concession,
which will result in a 1% NSR royalty on the Nacimiento I concession being granted to RoyaltyCo (the “Lunahuasi
Royalty”) in exchange for cash consideration. NGEx’s 100% owned Lunahuasi Project, as currently defined, is
located on the Nacimiento I concession.
In addition, another wholly-owned subsidiary of NGEx which holds the Los Helados Project, located in Region
III, Chile, on behalf of an unincorporated joint venture between NGEx and Nippon Caserones Resources LLC
(“NCR”), has entered into royalty purchase agreements with each of RoyaltyCo and NCR to cause a combined
2.0% NSR royalty to be granted on the concessions comprising the Chilean portion of the Los Helados properties
(the “Los Helados Royalty“) in exchange for cash consideration. The Los Helados Royalty, and the associa ted
aggregate cash consideration, will be allocated to RoyaltyCo and NCR based on the Company and NCR’s
respective pro rata interests in Los Helados of approximately 69% and 31%, resulting in RoyaltyCo’s portion of
the Los Helados Royalty amounting to a 1.38% NSR royalty.
The Company has also entered into an arrangement agreement with RoyaltyCo (the “Arrangement
Agreement”), whereby NGEx intends to complete a share capital reorganization by way of a statutory plan of
arrangement under the Canada Business Corporations Act, w hich will result in, among other things, at least
80.1% of the common shares of the RoyaltyCo (the “RoyaltyCo Shares”) being spun-out to the shareholders of
NGEx (the “NGEx Shareholders”). As part of the spin-out of the RoyaltyCo Shares to NGEx Shareholders, NGEx
will make an additional capital contribution into RoyaltyCo for working capital purposes, which is in addition to
the amounts to be injected by NGEx to fund the acquisition of the Lunahuasi Royalty and RoyaltyCo’s portion
of the Los Helados Royalty, which will also be made by way of a capital contribution. The capital contributions
by NGEx will result in it receiving a number of RoyaltyCo Shares in return representing up to a 19.9% ownership
interest in RoyaltyCo that will be retained and not form part of the spin-out to NGEx Shareholders.
The Arrangement Agreement describes the terms of the proposed arrangement (the “Arrangement”), which,
among other things, includes:
• Each common share of NGEx (each, a “NGEx Share”) outstanding at the close of business on the
business day immediately preceding the effective date of the Arrangement (the “Share Distribution
Record Date”) will be redesignated and exchanged as part of a reo rganization of the share capital of
NGEx, and in accordance with section 86 of the Income Tax Act (Canada), for (i) one (1) new common
share of NGEX (each, a “New NGEx Share”), which such New NGEx Share will be identical to the NGEx
Shares immediately prior to the effective time of the Arrangement (the “Effective Time”) and (ii) 1/4
of a RoyaltyCo Share; and
• Each outstanding stock option of NGEx (each, a “NGEx Option”) that is outstanding immediately before
the Effective Time will be exchanged for (i) one (1) replacement stock option of NGEx (each, a “NGEx
Replacement Option”) to purchase from NGEx one New NGEx Share having an exercise price (rounded
up to the nearest whole cent) equal to the product of the exercise price of each NGEx Option so
exchanged immediately before the Effective Time multiplied by the fair market value of a New NGEx
Share at the Effective Time divided by the total of the fair market value of a New NGEx Share and the
fair market value of 1/4 of a RoyaltyCo Share at the Effective Time, and (ii) one (1) fully -vested stock
option of the Company (each, a “RoyaltyCo Option”) to acquire 1/4 of a RoyaltyCo Share, each whole
RoyaltyCo Option having an exercise price (rounded up to the nearest whole cent) equal to the product
of the exercise price of the NGEx Option so exchanged immediately prior to the Effective Time
multiplied by the fair market value of 1/4 of a RoyaltyCo Share at the Effective Time divided by the
total of the fair market value of one New NGEx Share and 1/4 of a RoyaltyCo Share at the Effective
Time.
Completion of the Arrangement is subject to receipt of requisite NGEx Shareholder, Toronto Stock Exchange
and court approvals, the timing and receipt of which cannot be determined at this time. NGEx Shareholders
will vote on the Arrangement at a special meeting to be held on September 12, 2025.
Following completion of the Arrangement, NGEx is expected to hold up to a 19.9% ownership interest in
RoyaltyCo, with the remaining RoyaltyCo Shares being distributed to NGEx Shareholders as described above,
in accordance with their pro-rata interest in NGEx as of the Share Distribution Record Date.
RoyaltyCo intends to apply to list its shares on the TSXV following completion of the Arrangement. Such listing
will be subject to it fulfilling all of the listing requirements of the TSXV.
Additional details with respect to the Arrangement can be found in the Company’s News Release dated July
22, 2025, on SEDAR+ at www.sedarplus.ca and the Company’s website www.ngexminerals.com.
Financial Results
(In thousands of Canadian dollars, except per share amounts)
Three months ended Six months ended
June 30, June 30,
2025 2024 2025 2024
Exploration and project investigation 17,414 7,818 53,837 30,337
General and administration (“G&A”) 3,294 1,977 7,066 3,836
Net loss 21,387 7,579 56,529 27,323
Basic and diluted loss per share 0.10 0.04 0.27 0.15
The financial information in this table was selected from the Company’s condensed interim consolidated financial statements for the three and six months
June 30, 2025 (the “Financial Statements”), which are available on SEDAR+ at www.sedarplus.ca and the Company’s website www.ngexminerals.com.
Selected Financial Information
(In thousands of Canadian dollars)
June 30, December 31,
2025 2024
Cash 97,240 153,368
Short-term investments 46,022 45,185
Working capital 138,592 188,944
Mineral properties 6,167 6,271
Total assets 152,087 208,563
The financial information in this table was selected from the Financial Statements, which are available on SEDAR+ at www.sedarplus.ca and the Company’s
website www.ngexminerals.com.
The Company incurred a net loss of $21.4 million during the three months ended June 30, 2025, comprised
primarily of $17.4 million in exploration and project investigation costs and $3.3 million in G&A costs. For the
2024 comparative period, the Company reported a net loss of $7.6 million, consisting primarily of $7.8 million
in exploration and project investigation costs and $2.0 million in G&A costs, which were partially offset by a
gain of approximately $2.4 million resulting from the use of marketable s ecurities for the purposes of
facilitating intragroup funding transfers.
Liquidity and Capital Resources
As at June 30, 2025, the Company had cash of $97.2 million, short -term investments of $46.0 million and net
working capital of $138.6 million compared to cash of $153.4 million, short-term investments of $45.2 million
and net working capital of $188.9 million as at December 31, 2024. The Company’s total treasury, consisting of
its cash and short-term investments, and net working capital decreased during the six months ended June 30,
2025, due primarily to funds used in operations and for general corporate purposes.
About NGEx Minerals
NGEx Minerals is a copper and gold exploration company based in Canada, focused on exploration of the
Lunahuasi copper-gold-silver project in San Juan Province, Argentina, and the nearby Los Helados copper-gold
project located approximately nine kilometres northeast in Chile’s Region III. Both projects are located within
the Vicuña District, which includes the Caserones mine, and the Josemaria and Filo del Sol deposits.
NGEx owns 100% of Lunahuasi and is the majority partner and operator for the Los Helados project, subject to
a Joint Exploration Agreement with Nippon Caserones Resources LLC, which is the indirect 30% owner of the
operating Caserones open pit copper mine located approximately 17 kilometres north of Los Helados. Lundin
Mining Corporation holds the remaining 70% stake in Caserones.
The Company’s common shares are listed on the TSX under the symbol "NGEX" and also trade on the OTCQX
under the symbol “NGXXF”. NGEx is part of the Lundin Group of Companies.
Additional information relating to NGEx may be obtained or viewed on SEDAR+ at www.sedarplus.ca.
For further information, please contact:
Finlay Heppenstall
VP, Corporate Development & Investor Relations
Tel: +1 (604) 806-3089
Additional Information
The information contained in this news release was accurate at the time of dissemination but may be
superseded by subsequent news release(s). The Company is under no obligation, nor does it intend to update
or revise the forward-looking information, whether as a result of new information, future events or otherwise,
except as may be required by applicable securities laws.
Qualified Persons and Technical Notes
The scientific and technical disclosure for the Lunahuasi Project included in this news release have been
reviewed and approved by Bob Carmichael, B.A.Sc., P.Eng. who is the Qualified Person as defined by NI 43-101.
Mr. Carmichael is Vice President, Exploration for the Company. Additional details on the drill results from the
Company’s completed Phase 3 drill program at Lunahuasi, including those specifically discussed above, can be
found in the Company’s press releases dated December 18, 2024, January 22, 2025, February 19, 2025, March
13, 2025, April 24, 2025, May 21, 2025, June 18, 2025, July 2, 2025, and July 9, 2025.
Copper equivalent for Lunahuasi drill intersections is calculated based on US$ 3.00/lb Cu, US$ 1,500/oz Au and
US$ 18/oz Ag, with 80% metallurgical recoveries assumed for all metals. The formula is: CuEq % = Cu % +
(0.7292 * Au g/t) + (0.0088 * Ag g/t).
Cautionary Note Regarding Forward-Looking Statements
Certain statements made and information contained herein in the news release constitutes “forward-looking information”
and “forward-looking statements” within the meaning of applicable securities legislation (collectively, “forward -looking
information”). A ll statements other than statements of historical facts included in this document constitute forward -
looking information, including but not limited to, statements regarding: exploration and development plans and
expenditures, including the size, scope, nature, timing and foci of the Company’s future exploration programs, particularly
at Lunahuasi; the potential for an underground exploration adit at Lunahuasi; the geological interpretation of the
Lunahuasi system which is expected to evolve with additional drilling, including whether current interpretation of the
exploration and/or drill results to date at Lunahuasi will be confirmed by future work, the ability of future drilling to convert
exploration potential to a Mineral Resource Estimate, the scale, gr ade, or significance of the discovery of a copper -gold
porphyry system and visible gold in quartz veins at the project; the timing, structure and completion of the Arrangement;
the timing and completion of the transactions contemplated by the royalty purchase agreements related to the Lunahuasi
Royalty and the Los Helados Royalty; the timing and amount of the injection of cash from NGEx to RoyaltyCo; future
potential for NGEx and RoyaltyCo; future acquisitions of additional royalty interests by RoyaltyCo to its portfolio;
anticipated benefits of the Arrangement to NGEx, NGEx Shareholders or the shareholders of RoyaltyCo; the timing and
receipt of required shareholder, court and stock exchange approvals for the Arrangement; the composition of RoyaltyCo’s
board of directors and management team; the application for, and listing of, the RoyaltyCo Shares on the TSXV following
completion of the Arrangement; the future uses of the Company’s cash and working capital; the success of future
exploration activities; potential for the discovery of new mineral deposits or expansion of existing mineral deposits; ability
to build shareholder value; expectations with regard to adding to Mineral Resources through exploration; expectations
with respect to the conversion of Inferred Resources to an Indicated Resource classification, or the conversion of Indicated
Resources to a Measured Resource classification; ability to execute the planned work programs; estimation of commodity
prices, Mineral Resources, estimations of costs, an d permitting time lines; ability to obtain surface rights and property
interests; currency exchange rate fluctuations; requirements for additional capital; government regulation of mining
activities; environmental risks; unanticipated reclamation expenses; title disputes or claims; limitations on insurance
coverage; assumptions that the Company will be able to carry out exploration program at Lunahuasi as planned;
fluctuations in the current price of and demand for commodities; and material adverse changes in general business and
economic conditions, particularly in Argentina with respect to uncertainty around exchange rate and other economic
policies potentially affecting the Company, as well as other factors associated with ongoing financial instability in
Argentina. Generally, this forward -looking information can frequently, but not always, be identified by use of forward -
looking terminology such as "plans", "expects" "is expected", "budget", "scheduled", "estimates", "forecasts", "intends",
“projects”, “b udgets”, “assumes”, “strategy”, “objectives”, “potential”, “possible”, "anticipates", or "believes", or
variations of such words and phrases or statements that certain actions, events, conditions or results “will”, "may", "could",
"would", “should”, "might" or "will be taken", "will occur" or "will be achieved" or the negative connotations thereof.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation,
the intended use or deployment of the Company’s treasury balance, and the nature, scope and timing of the work to be
undertaken to advanc e the Lunahuasi Project. Although the Company believes that these factors and expectations are
reasonable as at the date of this document, in light of management’s experience and perception of current conditions and
expected developments, these statements are inherently subject to significant business, economic and competitive
uncertainties and contingencies. Known and unknown risks, uncertainties and other factors may cause actual results or
events to differ materially from those anticipated in such forwar d-looking statements and undue reliance should not be
placed on such statements and information. Such factors include, without limitation: the risk of the Company not obtaining
court, NGEx Shareholder or stock exchange approvals to proceed with the Arrange ment; the risk of unanticipated tax
consequences to the Arrangement; the risk of the market valuing NGEx and RoyaltyCo in a manner not anticipated by the
Company; risks related to the benefits of the Arrangement not being realized; risks relating to RoyaltyCo not being able to
add additional royalty interests to its portfolio; the emergence or intensification of infectious diseases, such as COVID 19,
and the risk that such an occurrence globally, or in the Company’s operating jurisdictions and/or at its pro ject sites in
particular, could impact the Company’s ability to carry out the program and could cause the program to be shut down;
estimations of costs, and permitting time lines; ability to obtain environmental permits, surface rights and property
interests in a timely manner; currency exchange rate fluctuations; requirements for additional capital; changes in the
Company’s share price; changes to government regulation of mining activities; environmental risks; unanticipated
reclamation or remediation expenses; title disputes or claims; limitations on insurance coverage, fluctuations in the current
price of and demand for commodities; material adverse changes in general business, government and economic conditions
in the Company’s operating jurisdictions, such as Argentina; the availability of financing if and when needed on reasonable
terms; risks related to material labour disputes, accidents, or failure of plant or equipment; there may be other factors that
cause results not to be as anticipated, estimated, or intended, including those set out in the Company’s most recent annual
information form and annual management discussion and analysis, and risks, uncertainties and other factors identified in
the Company's periodic filings with Canadian securities regulators, which are available on the Company’s website and
SEDAR+ at www.sedarplus.ca under the Company’s profile.
The forward-looking information contained in this news release is based on information available to the Company as at
the date of this news release. Except as required under applicable securities legislation, the Company does not undertake
any obligation t o publicly update and/or revise any of the included forward -looking information, whether as a result of
additional information, future events and/or otherwise. Forward -looking information is provided for the purpose of
providing information about managemen t's current expectations and plans and allowing investors and others to get a
better understanding of the Company's operating environment. Although the Company has attempted to identify
important factors that would cause actual results to differ materially from those contained in forward-looking information,
there may be other factors that cause results not to be as anticipated, estimated, or intended. There can be no assurance
that such statements will prove to be accurate, as actual results and future eve nts could differ materially from those
anticipated in such statements. All the forward -looking information contained in this document is qualified by these
cautionary statements. Readers are cautioned not to place undue reliance on forward -looking informat ion due to the
inherent uncertainty thereof.
Cautionary Note to U.S. Readers
Information concerning the mineral properties of the Company contained in this news release has been prepared in
accordance with the requirements of Canadian securities laws, which differ in material respects from the requirements of
securities laws of the United States applicable to U.S. companies subject to the reporting and disclosure requirements of
the United States Securities and Exchange Commission.