News Summary
The most recent release on December 19, 2025, confirms a trading halt by the Canadian Investment Regulatory Organization (CIRO) pending news. This follows a December 11, 2025, announcement that the company sold its non-core Tassa project in Peru for US$3.5 million to Colque Holding Pty Ltd. The Tassa deal consists of US$500,000 already paid, with US$3.0 million in deferred payments over 30 months and a 2% Net Smelter Return (NSR) royalty.
Material Impact
The trading halt is likely the culmination of the Strategic Review process initiated in March 2025. Given the company’s dire financial position, the halt is expected to precede a material announcement regarding a corporate sale, merger, or significant recapitalization.
The Tassa project sale, while providing US$3.5 million in total potential consideration, is immaterial relative to the company’s US$92.7 million working capital deficiency reported in late 2025. Operationally, the company is in crisis; Q3 2025 results showed an All-In Sustaining Cost (AISC) of US$3,563 per gold ounce, which exceeded the average realized gold price of US$3,473. Effectively, the company lost money on every ounce produced at its flagship Mercedes mine during the period.
Catalysts
– The substance of the pending news following the December 19 halt; specifically, whether a buyer has been found for the Mercedes mine or the Corani project.
– Implementation of the Mercedes “recovery plan” to address the development deficit and ventilation issues at the Marianas deposit.
– The outcome of the December 31, 2025, deadline for deferred interest payments to Sandstorm and Equinox.
– Potential for a highly dilutive equity raise or a total change of control.
Materiality Conclusion
The most recent news (the halt) is neutral in isolation but signals a material turning point. The Tassa sale is a minor liquidity event that does not solve the fundamental insolvency risk. The company is currently kept alive by monthly US$600,000 drawdowns from Sandstorm Gold. Without a massive operational turnaround or a sale of the Corani project, the company faces significant risk of liquidation or foreclosure by its primary creditors, Sandstorm and Equinox.
