News Summary
The most recent news (December 18, 2025) announces a significant one-year sales agreement with an unnamed major offtake client to purchase direct-ship material from the KT Gold Mine and SC Silver Mine in Arizona. The agreement, effective December 16, 2025, allows for the shipment of up to 12,000 tons of crushed material in 2026. Payment terms include an 80% provisional payment within five days of documentation. Concurrently, the company settled $62,082 USD in convertible debenture interest by issuing 258,675 shares at $0.24. Operationally, the fourth batch of concentrate (bringing the total to 11,500 lbs) is ready for pickup, and equipment acquisition for the direct-ship initiative has commenced, with shipping expected to start in Q1 2026.
Material Impact
This news is Material – Positive as it marks a transition from small-scale concentrate production to a high-volume direct-shipping model.
– Revenue Visibility: The 12,000-ton commitment for 2026 provides a clear operational target and a structured cash flow mechanism (80% provisional payment).
– Validation of Assets: While the client is unnamed, the agreement suggests that the bulk material from KT and SC mines meets commercial metallurgical requirements for direct smelting or processing by a third party.
– Reduced Processing Risk: Direct shipping bypasses some of the throughput limitations of the company’s own 125 tpd mill, allowing for faster monetization of mined material.
– Ongoing Dilution: The settlement of interest via share issuance (at $0.24) confirms that the company remains in a cash-constrained position, relying on equity to service debt even as it nears larger-scale revenue.
Catalysts
– First Shipment: Confirmation of the first direct shipment in Q1 2026 and receipt of the 80% provisional payment.
– Assay Reconciliations: Any variance between the company’s internal assays and the final settlement assays from the offtake client.
– Capital Expenditure: The cost and completion of the crushing and loading infrastructure required to handle 1,000 tons per month.
– Resource Reporting: Progress toward a NI 43-101 compliant resource at the Washington Mine (Idaho), which was previously signaled as a goal.
Materiality Conclusion
The direct ship agreement is a material evolution in the company’s business model. It shifts the company from a “proof-of-concept” concentrate producer to a bulk material supplier. However, the lack of a named counterparty and the continued practice of issuing shares to pay debt interest temper the “Game Changer” status, as financial stability is not yet fully independent of equity markets.
