Torex Gold to Acquire Prime Mining Combination creates a leading diversified Americas-focused precious metals company (All amounts expressed in Canadian dollars unless otherwise stated)
Torex Gold to Acquire Prime Mining
Combination creates a leading diversified Americas-focused
precious metals company
(All amounts expressed in Canadian dollars unless otherwise stated)
Toronto, Ontario--(Newsfile Corp. - July 28, 2025) - Torex Gold Resources Inc. ("Torex", the
"Company") (TSX: TXG) (OTCQX: TORXF) and Prime Mining Corp. ("Prime Mining") (TSX: PRYM)
(OTCQX: PRMNF) (Frankfurt: O4V3) are pleased to announce that they have entered into a definitive
agreement (the "Arrangement Agreement") whereby Torex will acquire all of the issued and outstanding
common shares of Prime Mining (the "Prime Mining Shares") pursuant to a plan of arrangement (the
"Transaction").
The Transaction will result in Torex owning a 100% interest in Prime Mining's multi-million ounce Los
Reyes gold-silver project ("Los Reyes" or the "Los Reyes Project"). The Los Reyes Project is located in
Mexico, a jurisdiction in which Torex has successfully worked since 2010 and built unrivalled local
expertise in terms of operational excellence, project development, project permitting, community
relations, and stakeholder engagement. The Los Reyes Project is a highly prospective, advanced
exploration/development-stage asset hosting a combined underground and open-pit mineral resource of
approximately 1.5 million ounces ("Moz") gold and 54.0 Moz silver in the Indicated category and 538
thousand ounces ("koz") gold and 21.6 Moz silver in the Inferred category.
(1)
Pursuant to the terms of the Arrangement Agreement, Prime Mining shareholders will receive 0.060 of a
common share of Torex (each whole share, a "Torex Share") for each Prime Mining Share held (the
"Exchange Ratio" or the "Consideration"), implying a 32.4% premium to the 30-day volume-weighted
average price ("VWAP") of the Prime Mining Shares based on the 30-day VWAP of the Torex Shares
for the period ended July 25, 2025 and an 18.5% premium to the closing price of the Prime Mining
Shares on the Toronto Stock Exchange ("TSX") on July 25, 2025. The Exchange Ratio represents a
price of $2.57 per Prime Mining Share based on the closing price of the Torex Shares on the TSX on
July 25, 2025 and implies an equity value for Prime Mining of approximately $449 million (US$327
million).
Upon completion of the Transaction, Torex will issue approximately 10.5 million Torex Shares to Prime
Mining shareholders and existing Prime Mining shareholders will own approximately 10.7% of Torex.
STRONG STRATEGIC RATIONALE AND BENEFITS FOR TOREX SHAREHOLDERS
Creates a high-quality diversified gold, silver, and copper producer
Diversifies Torex's asset base by adding a high-quality advanced exploration/development-
stage asset in Mexico
Significantly enhances Torex's medium and long-term growth potential, particularly when
considered alongside Torex's recently announced acquisition of Reyna Silver
Leverages Torex's existing Mexican expertise and project execution team to advance Los
Reyes through development and production
Opportunity for value creation through continued exploration and development of Los Reyes
Los Reyes boasts a sizeable gold and silver mineral resource, materially increasing
Torex's resource base
Increases Torex's Measured and Indicated Resources by 32% to 6.2 Moz of gold and
Inferred Resources by 44% to 1.8 Moz of gold
(1,2)
Further diversifies Torex's existing gold and copper commodity mix via material silver
exposure, with Los Reyes adding 54.0 Moz of silver in the Indicated category and 21.6 Moz
of silver in the Inferred category
(1)
Substantial exploration upside at Los Reyes Project's large, underexplored land package
Exploration growth pipeline supported by three main high-grade discoveries in Z-T,
Guadalupe East, and Central
Significant exploration upside as the primary zones of mineralization remain open along
strike and dip, along with several generative targets outside of the main resource areas
Los Reyes has a long mining history dating back to the 1700's with estimated historical
production of approximately 1 Moz gold and 60 Moz silver at average grades exceeding 10
grams per tonne ("g/t" or "gpt") gold and 500 g/t silver
Leverage Torex's proven technical capabilities, in-country expertise, and strong financial
position to advance Los Reyes
Ability to maximize the value of Los Reyes by leveraging Torex's expertise and established
track record of exploration, community engagement, project development, and operating
success in Mexico
Utilize Torex's strong balance sheet and significant expected free cash flow to fund Los
Reyes through to production while remaining free cash flow positive
Enhanced capital markets appeal
Further broadens shareholder base and adds a key shareholder in Pierre Lassonde, who
has an unparalleled track record of execution and creating shareholder value
AN ATTRACTIVE TRANSACTION FOR PRIME MINING SHAREHOLDERS
Immediate and significant premium to Prime Mining shareholders
Consideration represents an attractive premium to historical market prices of Prime Mining
Shares. At the Exchange Ratio, the Consideration represents a 32.4% premium to the 30-
day VWAP of the Prime Mining Shares based on the 30-day VWAP of the Torex Shares for
the period ended July 25, 2025 and an 18.5% premium to the closing price of the Prime
Mining Shares on the TSX on July 25, 2025
Participation in an established, high-quality, gold/copper producer with substantial
growth potential
All-share consideration provides Prime Mining shareholders the opportunity to continue to
participate in the future upside potential of Los Reyes through their meaningful 10.7%
ownership in Torex
Prime Mining shareholders will benefit from exposure to Torex's free cash flowing Morelos
Complex, which boasts the producing El Limón Guajes and Media Luna mines along with the
EPO development stage project. The Morelos Complex was the largest gold producer in
Mexico in 2024, producing more than 450 koz of gold with a current mine life of over 10
years
Enhanced exploration upside through Torex's highly prospective Morelos Property in addition
to a suite of highly prospective early-stage exploration projects through the proposed all-cash
acquisition of Reyna Silver Corp. ("Reyna Silver"), which Torex announced on June 23, 2025
and is scheduled to be considered by Reyna Silver's securityholders on August 11, 2025
De-risks development of Los Reyes by leveraging Torex's Mexican expertise and strong
technical capabilities
Torex brings deep and recent expertise in discovering, permitting, building, and operating
mines in Mexico. Torex completed the construction of the ~US$800 million El Limón Guajes
mine in 2015 and commenced commercial production in April 2016. More recently, Torex
completed the ~US$1.0 billion ("bln") Media Luna mine and commenced commercial
production in May 2025. Torex delivered both projects largely on schedule with minimal
deviations from their original budgets. Torex has an experienced Mexican permitting and
project/construction team ready and available to advance Los Reyes
Significantly enhanced financial strength
The Transaction provides Prime Mining's shareholders access to Torex's strong balance
sheet, liquidity, and growing significant free cash flows from Media Luna. These strong
financial resources support the advancement of Los Reyes and eliminate financing and
dilution risks to bring the project into production
Enhanced Capital Markets Profile
Torex has a market capitalization of ~US$2.7 billion, enabling Prime Mining shareholders to
benefit from increased market presence, analyst coverage, investor demand, and trading
liquidity
CEO AND SHAREHOLDER COMMENTARY
Jody Kuzenko, President and Chief Executive Officer of Torex, stated:
"The Los Reyes Project represents a unique opportunity for the Torex team to develop a high-quality
asset with the potential for a high margin, low capital, and long-life operation in a jurisdiction that we
know very well. The acquisition of Prime Mining, and the previously announced all-cash acquisition of
Reyna Silver, support our strategy to systematically build a diversified, Americas-focused precious
metals producer with a portfolio of producing, development, and exploration stage assets.
"Our extensive due diligence reinforced the scarcity of an asset of this quality, and we look forward to
demonstrating the significant value we see in this exciting project. Los Reyes has multiple high-potential
mineralized zones which remain open along strike and at depth, and we are confident that the project
has strong untapped upside with numerous avenues for growth.
"Over the last 15 years, the Torex team has demonstrated the technical and in-country expertise to
successfully advance projects from exploration through to development and production in Mexico,
delivering considerable value to our shareholders. We will leverage these competencies, along with our
significant expected free cash flow from the now completed Media Luna Project, to unlock and maximize
the value of Los Reyes through development and production. We look forward to building strong
relationships with the local communities in Cosalá, and we will work with them to ensure that the project
delivers meaningful and sustainable benefits, just as we have and continue to do at Morelos."
Scott Hicks, Chief Executive Officer and Director of Prime Mining, added:
"The addition of Prime Mining's high-quality Los Reyes Project to the Torex pipeline as its next
development asset presents both Prime Mining and Torex shareholders with substantial value
enhancement through this share-based acquisition. In addition to gaining exposure to Torex's free-cash
flowing Morelos Complex, Prime Mining shareholders can continue to realize significant value creation
as Los Reyes is developed with the benefit of Torex's operational and development experience in
Mexico. Both companies are aligned in their community and employee-focused values, approach to
environmental stewardship and commitment to ensuring that all stakeholders will benefit through this
combination. Prime looks forward to working with Torex through the transitionary period.
"Our Board, Management, and key shareholders view this opportunity as a great way to de-risk and
unlock the full exploration and project potential that we collectively see in Los Reyes through our
meaningful pro-forma ownership in Torex. I would like to take this opportunity to thank the Prime Mining
team, Board of Directors, and our other stakeholders for all their outstanding contributions in getting
Prime Mining to this exciting stage."
Pierre Lassonde, commented:
"I am truly excited to be a part of this business combination. Jody and her team are, like us, proven
creators of shareholder value. The Morelos Complex is a world class asset that, combined with our high-
grade Los Reyes gold-silver deposit, will deliver outsized shareholder returns. I would like to thank Scott,
Murray, and the team at Prime Mining for advancing the high-grade, gold-silver system at Los Reyes,
and I look forward to working with Jody, Rick, and the team at Torex as we aim to do our part in building
a new high-margin, intermediate gold producer."
TRANSACTION SUMMARY
The Transaction will be completed pursuant to a court-approved plan of arrangement under the
Business
Corporations Act
(British Columbia). The Transaction will require approval of at least: (i) 66
2
/
3
% of the
votes cast by the shareholders of Prime Mining; (ii) 66
2
/
3
% of the votes cast by the shareholders of
Prime Mining and the holders of options ("Options"), restricted share units ("RSUs"), deferred share
units ("DSUs"), and warrants ("Warrants"), voting together as a single class; and (iii) a simple majority of
the votes cast by the shareholders of Prime Mining, excluding those votes attached to Prime Mining
Shares held by persons required to be excluded pursuant to Multilateral Instrument 61-101 -
Protection
of Minority Security Holders in Special Transactions
("MI 61-101"), at a special meeting of Prime
Mining securityholders expected to be held in September 2025. The Transaction does not require a vote
of Torex shareholders.
Pierre Lassonde as well as the directors and senior officers of Prime Mining, who collectively own 23%
of the Prime Mining Shares, have entered into voting support agreements, pursuant to which, subject to
the terms and conditions set forth therein, they will vote their securities held, as applicable, in favour of
the Transaction.
In addition to securityholder and court approvals, the Transaction is subject to applicable regulatory
approvals (including approvals of the TSX and clearance under Mexican antitrust laws) and the
satisfaction of certain other closing conditions customary for a transaction of this nature. The
Arrangement Agreement includes customary deal protections, including fiduciary-out provisions, non-
solicitation covenants, and the right to match any superior proposals. Additionally, a termination fee
payable in an amount of US$12.5 million is payable to Torex by Prime Mining in certain circumstances if
the Transaction is not completed.
Pursuant to the Arrangement Agreement, all outstanding Prime Mining RSUs and DSUs which remain
outstanding at the effective time of the Transaction will be deemed to be exercised or settled, for their in-
the-money value net of withholding taxes, as applicable, under the arrangement for Prime Mining Shares,
which will be exchanged for Torex Shares based on the Exchange Ratio. Outstanding Options will be
adjusted to, among other things, be exercisable for Torex Shares, and outstanding Warrants will be
adjusted in accordance with their terms.
Subject to the satisfaction of customary closing conditions, including the parties obtaining the requisite
regulatory approvals, the Transaction is expected to close in H2 2025, subject to the timing of clearance
under Mexican antitrust laws. The Prime Mining Shares are expected to be delisted from the TSX
promptly after closing of the Transaction.
Full details of the Transaction will be included in the meeting materials to be prepared by Prime Mining
in connection with the special meeting of securityholders, which are expected to be mailed to such
securityholders in September 2025.
None of the securities to be issued pursuant to the Transaction have been or will be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities
laws, and any securities issued pursuant to the Transaction are anticipated to be issued in reliance upon
available exemptions from such registration requirements pursuant to Section 3(a)(10) of the U.S.
Securities Act and applicable exemptions under state securities laws. This press release does not
constitute an offer to sell or the solicitation of an offer to buy any securities.
BOARD OF DIRECTORS' AND SPECIAL COMMITTEE RECOMMENDATIONS
The Arrangement Agreement has been unanimously approved by the Board of Directors of Torex (the
"Torex Board"), with Rick Howes not participating in deliberations of the Torex Board or voting on the
Transaction given his role as CEO of Gold Candle Ltd., which has major shareholders in common with
Prime Mining. Additionally, the Torex Board received a fairness opinion from CIBC World Markets Inc.,
which states that as of the date of such opinion and based upon and subject to the assumptions,
limitations and qualifications set forth therein, the Consideration payable by Torex pursuant to the
Arrangement Agreement, is fair, from a financial point of view, to Torex.
The Board of Directors of Prime Mining (the "Prime Mining Board") appointed a special committee of
independent directors (the "Special Committee") to, among other things, consider and make a
recommendation to the Prime Mining Board with respect to the Transaction. After consultation with its
financial and legal advisors, and on the unanimous recommendation of the Special Committee, the
Prime Mining Board unanimously determined that the Transaction is in the best interests of Prime Mining
and approved the Arrangement Agreement. Accordingly, the Prime Mining Board and the Special
Committee recommend that Prime Mining securityholders vote in favour of the Transaction.
The Prime Mining Board and the Special Committee received a fairness opinion from BMO Nesbitt
Burns Inc., which states that as of the date of such opinion and based upon and subject to the various
assumptions, limitations, qualifications and scope of review set forth therein, the Consideration to be
received by Prime Mining shareholders (other than those Prime Mining shareholders whose votes are
required to be excluded from the vote pursuant to Section 8.1(2) of MI 61-101), pursuant to the
Transaction, is fair, from a financial point of view, to such Prime Mining shareholders.
ADVISORS AND COUNSEL
CIBC World Markets Inc. is acting as exclusive financial advisor to Torex. Cassels Brock & Blackwell
LLP is acting as Torex's legal advisor.
Trinity Advisors Corporation is acting as financial advisor to Prime Mining and its Board of Directors,
and BMO Nesbitt Burns Inc. provided a fairness opinion to the Special Committee and the Prime Mining
Board. Blake, Cassels & Graydon LLP is acting as Prime Mining's legal advisor.
CONFERENCE CALL AND WEBCAST
Senior management from Torex and Prime Mining will host a conference call and webcast on Monday,
July 28, 2025 at 8:00 AM (ET) for members of the investment community to discuss the Transaction.
Telephone Access
For expedited access to the conference call,
registration
is open to obtain an access code in advance,
which will allow participants to join the call directly at the scheduled time. Alternatively, dial-in details are
as follows:
Toronto local or International: 1-647-846-8914
Toll-Free (North America): 1-833-752-3842
Please join the conference call approximately ten minutes prior to the scheduled start time if using the
dial-in details above.
Webcast Access
A webcast will be available on the Company's website at
www.torexgold.com/investors/upcoming-
events/
. The webcast will
also be archived
on the Company's website.
ABOUT TOREX GOLD RESOURCES INC.
Torex Gold Resources Inc. is an intermediate gold producer based in Canada, engaged in the
exploration, development, and operation of its 100% owned Morelos Property, an area of 29,000
hectares in the highly prospective Guerrero Gold Belt located 180 kilometres southwest of Mexico City.
The Company's principal asset is the Morelos Complex, which includes the producing Media Luna
Underground, ELG Underground, and ELG Open Pit mines, the development stage EPO Underground
Project, a processing plant, and related infrastructure. Commercial production from the Morelos
Complex commenced on April 1, 2016 and an updated Technical Report for the Morelos Complex was
released in March 2022.
Torex's key strategic objectives are: deliver Media Luna to full production and build EPO; optimize
Morelos production and costs; grow reserves and resources; disciplined growth and capital allocation;
retain and attract best industry talent; and industry leader in responsible mining. In addition to realizing
the full potential of the Morelos Property, the Company is seeking opportunities to acquire assets that
enable diversification and deliver value to shareholders.
FOR FURTHER INFORMATION, PLEASE CONTACT:
TOREX GOLD RESOURCES INC.
Jody Kuzenko
President and CEO
Direct: (647) 725-9982
Dan Rollins
Senior Vice President, Corporate Development & Investor Relations
Direct: (647) 260-1503
ABOUT PRIME MINING CORP.
Prime Mining is managed by an ideal mix of successful mining executives, strong capital markets
personnel, and experienced local operators all focused on unlocking the full potential of Los Reyes.
Prime Mining has a well-planned capital structure with a strong management team and insider
ownership. Prime Mining is targeting a material resource expansion at Los Reyes through a combination
of new generative area discoveries and growth, while also building on technical de-risking activities to
support eventual project development.
FOR FURTHER INFORMATION, PLEASE CONTACT:
PRIME MINING CORP.
Scott Hicks
Chief Executive Officer and Director
Indi Gopinathan
Vice President, Capital Markets & Business Development
Tel: (604) 238-1659
TECHNICAL INFORMATION
(1)
Prime Mining's current mineral resource estimate is comprised of 49.0 million tonnes Indicated
Resources (1,491,000 ounces contained Au at 0.95 g/t and 54.00 million ounces contained Ag at 34.2
g/t) and an additional 17.2 million tonnes (538,000 ounces contained Au at 0.97 g/t and 21.56 million
ounces contained Ag at 39.0 g/t) of Inferred material and has an effective date of October 15, 2024.
Additional information is available in Prime Mining's technical report (the "Prime Mining Technical
Report") entitled "The Los Reyes Project, México" with report date November 27, 2024 and effective
date October 15, 2024, and amended report date of June 27, 2025 on SEDAR+ at
www.sedarplus.ca
.
(2)
The mineral resource estimate for Torex's Morelos Complex can be found in the table below.
Additional information is available in Torex's technical report (the "Torex Technical Report") entitled the
"Morelos Property, NI 43-101 Technical Report, ELG Mine Complex Life of Mine Plan and Media Luna
Feasibility Study, Guerrero State, Mexico", dated effective March 16, 2022, which was filed on March
31, 2022, and in Torex's annual information form dated March 21, 2025, each filed on SEDAR+ at
www.sedarplus.ca
.
Mineral Resource Estimate - Morelos Complex (December 31, 2024)
Tonnes
Au
Ag
Cu
Au
Ag
Cu
AuEq
AuEq
(kt)
(gpt)
(gpt)
(%)
(koz)
(koz)
(Mlb)
(gpt)
(koz)
Media Luna Underground
Measured
2,994
3.95
40.0
1.30
380
3,855
86
6.55
630
Indicated
26,120
2.83
30.2
1.05
2,374
25,385
603
4.90
4,114
Measured & Indicated
29,114
2.94
31.2
1.07
2,754
29,240
689
5.07
4,744
Inferred
7,675
2.38
22.8
0.90
587
5,632
152
4.12
1,017
ELG Underground
Measured
3,164
5.04
7.4
0.27
512
751
19
5.56
566
Indicated
5,287
4.42
8.9
0.28
752
1,521
33
4.99
848
Measured & Indicated
8,451
4.65
8.4
0.28
1,264
2,272
51
5.20
1,414
Inferred
1,961
3.86
7.8
0.21
243
490
9
4.30
271
EPO Underground
Measured
-
-
-
-
-
-
-
-
-
Indicated
7,060
2.66
31.2
1.28
604
7,082
200
5.18
1,176
Measured & Indicated
7,060
2.66
31.2
1.28
604
7,082
200
5.18
1,176
Inferred
6,883
1.76
39.3
1.24
390
8,690
188
4.31
954
ELG Open Pit
Measured
189
3.89
7.0
0.20
24
43
1
3.97
24
Indicated
865
2.46
9.0
0.43
69
251
8
2.62
73
Measured & Indicated
1,054
2.72
8.7
0.38
92
294
9
2.86
97
Inferred
6
3.56
5.9
0.24
1
1
0
3.65
1
Total Morelos Complex
Measured
6,347
4.49
22.8
0.75
916
4,649
105
5.98
1,220
Indicated
39,332
3.00
27.1
0.97
3,798
34,239
844
4.91
6,211
Measured & Indicated
45,679
3.21
26.5
0.94
4,714
38,888
949
5.06
7,431
Inferred
16,526
2.30
27.9
0.96
1,222
14,813
349
4.22
2,243
N
otes to accompany the mineral resource table:
1
.
Mineral resources were prepared in accordance with the CIM Definition Standards (May 2014).
2
.
The effective date of the estimates is December 31, 2024.
3
.
Mineral resources are depleted above a mining surface or to the as-mined solids as of December 31, 2024.
4
.
Gold equivalent ("AuEq") of total mineral resources is established from combined contributions of the various deposits.
5
.
Mineral resources for all deposits are based on an underlying gold ("Au") price of $1,650/oz, silver ("Ag") price of $22/oz, and copper ("Cu")
price of $3.75/lb.
6
.
Mineral resources are inclusive of mineral reserves (ex-stockpiles). Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
7
.
Numbers may not add due to rounding.
8
.
Mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant
issues.
9
.
The estimate was prepared by Mrs. Rochelle Collins, P.Geo. (Ontario), Principal, Mineral Resources.
Notes to accompany Media Luna Underground mineral resources:
1
.
Mineral resources for Media Luna Underground are reported above a 2.0 gpt AuEq cut-off grade. The assumed underground mining
methods are a combination of long-hole open stoping and mechanized cut-and-fill.
2
.
Mineral resources were estimated using ID
3
methods applied to 1.0 m capped downhole assay composites within lithology domains and
internal grade domains. Block model size is 5 m x 5 m x 5 m with 2.5 m x 2.5 m x 2.5 m sub-blocks.
3
.
Metallurgical recoveries at Media Luna Underground average 90% Au, 86% Ag, and 93% Cu.
4
.
The dataset allowed the bulk density to be directly estimated into the domains with an average bulk density of 3.2 g/cm
3
.
5
.
Media Luna Underground AuEq = Au (gpt) + (Ag (gpt) * 0.0127) + (Cu (%) * 1.6104), accounting for underlying metal prices and metallurgical
recoveries.
Notes to accompany ELG Underground mineral resources:
1
.
Mineral resources for ELG Underground are reported above a cut-off grade of 2.2 gpt AuEq. The assumed underground mining method is
mechanized cut-and-fill.
2
.
Mineral resources were estimated using ID
3
methods applied to 1.0 m capped downhole assay composites within lithology domains and
internal grade domains. Block model size is 5 m x 5 m x 5m with 2.5 m x 2.5 m x 2.5m sub-blocks.
3
.
Average metallurgical recoveries are 90% Au, 86% Ag, and 93% Cu, accounting for recoveries with planned copper concentrator.
4
.
The dataset allowed the bulk density to be directly estimated into the domains with an average bulk density of 3.4 g/cm
3
.
5
.
ELG Underground AuEq = Au (gpt) + (Ag (gpt) * 0.0127) + (Cu (%) * 1.6104), accounting for underlying metal prices and metallurgical
recoveries.
Notes to accompany EPO Underground mineral resources:
1
.
Mineral resources for EPO Underground are reported above a 2.0 gpt AuEq cut-off grade. The assumed mining method is from underground
methods, using long-hole open stoping.
2
.
Mineral resources were estimated using ID
3
methods applied to 1.0 m capped downhole assay composites within lithology domains and
internal grade domains. Block model size is 5 m x 5 m x 5m with 2.5 m x 2.5 m x 2.5 m sub-blocks.
3
.
Metallurgical recoveries at EPO average 87% Au, 85% Ag, and 92% Cu.
4
.
The dataset allowed the bulk density to be directly estimated into the domains with an average bulk density of 3.5 g/cm
3
.
5
.
EPO Underground AuEq = Au (gpt) + (Ag (gpt) * 0.0130) + (Cu (%) * 1.6480), accounting for underlying metal prices and metallurgical
recoveries.
Notes to accompany the ELG Open Pit mineral resources:
1
.
Mineral resources for ELG Open Pit are reported above an in-situ cut-off grade of 0.78 gpt Au.
2
.
Mineral resources were estimated using ID3 methods applied to 1.0 m capped downhole assay composites within lithology domains and
internal grade domains. Block model size is 5 m x 5 m x 5m with 2.5 m x 2.5 m x 2.5 m sub-blocks. Mineral resources are reported inside an
optimized pit shell, underground mineral reserves at ELD within the El Limón pit shell have been excluded from the open pit mineral
resources.
3
.
Average metallurgical recoveries are 89% Au, 30% Ag, and 15% Cu.
4
.
The dataset allowed the bulk density to be directly estimated into the domains with an average bulk density of 3.4 g/cm
3
.
5
.
ELG Open Pit AuEq = Au (gpt) + (Ag (gpt) * 0.0045) + (Cu (%) * 0.2627), accounting for underlying metal prices and metallurgical recoveries.
About the Los Reyes Gold and Silver Project
Los Reyes is a high-grade, low-sulphidation epithermal gold-silver project located in Sinaloa State,
Mexico. On October 15, 2024, Prime announced an updated multi-million-ounce high-grade open pit and
underground resource based on exploration drilling up to July 17, 2024. Since acquiring Los Reyes in
2019, Prime has spent more than $64 million on direct exploration activities and has completed over
221,000 metres of drilling to date.
On January 28, 2025, drilling was paused in response to a deterioration in the security situation in parts
of Sinaloa, including the Los Reyes area. Drill rigs remain on site and drill contractors are on standby to
resume drilling as soon as security improves. Prime will continue to work with local authorities to monitor
the current situation.