News Summary
The most recent news (December 23, 2025) reports initial drilling results from the Berrigan claims, which are part of an option agreement from Chibougamau Independent Mines. Hole TOM-25-009 returned 48.05 metres of 6.68% ZnEq (1.57 g/t AuEq), including a high-grade core of 2.90 metres at 39.03% ZnEq (9.15 g/t AuEq). Additionally, the company confirmed the receipt of a $1,000,000 non-dilutive cash payment from IAMGOLD related to a prior asset sale and closed a private placement totaling approximately $1,000,000 in gross proceeds.
Material Impact
The impact is Material – Positive, but carries significant caveats.
– Exploration Success: The intercepts at Berrigan are significant in width and grade, confirming the presence of a robust polymetallic system. The 39% ZnEq core suggests high-grade “sweet spots” which are essential for project economics.
– Liquidity Infusion: The $1M cash payment from IAMGOLD is a vital lifeline. Previous financial statements (May 2025) showed a desperate cash position ($18,033) and massive trade payables ($603,233). This non-dilutive capital, combined with the $1M private placement, allows the company to settle debts and continue drilling.
– Strategic Pivot: Under the new VP Exploration (Jean Lafleur), the company has consolidated the Chibougamau camp. The transition from “survival mode” to “exploration mode” is evident, though the cost of maintaining these options is high.
Catalysts
– Pending Assays: Results for 5 additional holes (TOM-25-011 to 015) are expected in January 2026. This will determine the continuity of the Berrigan mineralized envelope.
– Borehole EM Results: An ongoing electromagnetic survey will identify off-hole conductors, potentially guiding the 2026 winter drill program.
– Fraud Investigation: Management disclosed a US$300,000 financial fraud in late 2025. Investors must monitor for any updates on recovery or further internal control weaknesses.
– Option Payments: The company has heavy cash and share obligations to SOQUEM and Chibougamau Independent Mines. Watch for any further amendments or extensions.
Materiality Conclusion
The news is material because it demonstrates that the flagship Berrigan project has high-grade potential and the company finally has the cash to test it. However, the materiality is tempered by the company’s history of negative working capital and the recent $300k fraud incident, which raises serious red flags regarding administrative oversight.
