EXG ExGen Resources Inc. Material – Positive: ExGen Completes Scale-Enhancing Merger with MTB Metals to Solidify Shift Toward Diversified Royalty Model

News Summary

The most recent news (December 19, 2025) announces the successful completion of the acquisition of MTB Metals Corp. via a plan of arrangement. ExGen issued 0.286 common shares for each MTB share, resulting in approximately 109,149,808 ExGen shares outstanding. This follows a flurry of activity in late 2025, including a binding LOI (December 17, 2025) to acquire a silver stream on a past-producing gold mine in Chile for US$500,000. The stream entitles ExGen to 33.4% of silver production (dropping to 16.7% after 333,334 oz) at a delivery price of 20% of spot, with a minimum delivery of 4,200 oz/quarter starting Q2 2027. Additionally, the company secured an LOI for lithium properties in Nevada in October 2025.

Material Impact

The completion of the MTB merger is a transformative event that provides ExGen with the “critical mass” required to execute its new strategy as an emerging royalty and carried-interest company.
– Strategic Shift: ExGen is moving away from being a pure-play explorer toward a lower-risk model. The 20% carried interest in the Empire Mine (Idaho) and the new silver stream in Chile provide clear paths to cash flow without ExGen bearing the brunt of capital expenditures.
– Asset Diversification: The MTB acquisition adds the Telegraph (Copper-Gold) and Southmore projects in BC’s Golden Triangle, significantly expanding the portfolio beyond its previous core focus.
– Synergies: Integration of the MTB technical team and the addition of Mark T. Brown to the board provides deeper industry expertise.
– Financial Scale: While the merger is dilutive (issuing shares for MTB), the combined entity has a cleaner path to institutional investment than either company had separately.

Catalysts

– Phoenix Copper Financing: The 20% carried interest at Empire Mine depends on Phoenix Copper Ltd. closing its $75 million bond financing to fund construction. Any delay here is a direct delay to ExGen’s cash flow.
– Silver Stream Definitive Agreement: Watch for the transition of the Chile Silver Stream from a binding LOI to a finalized agreement and details on the “PrivateCo” counterparty.
– Nevada Lithium Exploration: Results or partnership news regarding the Spark North and Spark South lithium projects, particularly given their proximity to Surge Battery Metals’ discovery.
– Portfolio Rationalization: Watch for ExGen to potentially spin out or partner on non-core exploration assets to focus on royalty acquisitions.

Materiality Conclusion

The combination of the MTB merger completion and the acquisition of a cash-flowing silver stream represents a material positive shift in the company’s risk profile and scale. It moves ExGen from a speculative micro-cap explorer to a diversified project generator with a royalty tilt. However, the reliance on third-party financing for its flagship Empire Mine remains a significant hurdle to realizing full value.

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