In April 2021, the Company executed a streaming agreement on production from the Tahuehueto silver project, located in Mexico, owned and operated by Altaley Mining Corporation’s (formerly Telson Mining Corporation) (“Altaley”). Pursuant to the streaming agreement, the Company has the right to acquire 100% of silver production at 20% of the related off-take price in cash up to 1,250,000 ounces, and thereafter may acquire 20% of production at 20% of the related offtake price in cash. The streaming agreement terminates 10 years from the date of initial production. In consideration, the Company paid US$5,000,000 in two tranches, of which US$2,000,000 was paid in April 2021 and US$3,000,000 was paid in July 2021.

Tahuehueto is located in the mining friendly jurisdiction of Durango, Mexico. It is a typical epithermal polymetallic mineral deposit in this part of Mexico, with metals consisting of gold silver, zinc, copper and lead. Based on the PFS completed in 2017, the project had a 21-year life-of-mine at a production rate of 550 tonnes per day.

The mine is fully permitted and has offtake agreements in place with Trafigura, and has already produced a saleable concentrate, processing over 42,000 tonnes of ore on a toll mill basis during 2018 - 2019. This confirmed the metallurgy as straight forward, with no need for fine or ultra-fine grinding, no refractory ore and the process uses standard “off the shelf” technology realizing excellent recoveries of payable metals. Altaley announced that it expects initial production in late 2021 and full scale production in early 2022.