News Summary
* On December 19, 2025, Pacific Bay Minerals Ltd. (PBM) announced the termination of its Letter of Intent (LOI) to acquire the Pereira Velho gold project in Brazil from Appian Capital Advisory LLP.
* The company disclosed that the vendor has optioned the property to another buyer, effectively ending PBM’s primary growth catalyst for 2025.
* Concurrent with the deal termination, PBM announced that the private placement financing originally arranged on September 25, 2025, will not proceed and has been cancelled.
* Management has pivoted its focus back to its 100% owned Haskins-Reed Critical Minerals project in British Columbia, citing “renewed investment interest” in the sector as the new strategic justification.
* This follows a December 10, 2025, management shuffle where David H. Brett replaced Reagan Glazier as President and CEO.
Material Impact
* The impact is severely negative. The Pereira Velho acquisition was the centerpiece of the company’s 2025 strategy, causing a trading halt that lasted from January to April 2025. The failure to close this deal after nearly a year of pursuit represents a total loss of time, capital, and strategic direction.
* The cancellation of the September 2025 financing ($305,000) is particularly alarming given the company’s precarious cash position (only $2,435 as of September 30, 2025).
* The company has effectively failed to raise any meaningful capital in 2025. The $2,000,000 financing planned in July was cancelled, and now the smaller $305,000 placement has also failed.
* Returning to the Haskins-Reed project appears to be a move of necessity rather than a proactive strategic shift, as the company lacks the funds to conduct significant work programs on any asset.
Catalysts
* Emergency Financing: The company must raise capital immediately to remain a going concern. Look for any announcement of a “lifeboat” financing or a potential debt-for-equity swap.
* Related Party Loans: Watch for further loans from directors or management to cover basic listing fees and administrative costs.
* Project Divestiture: PBM may be forced to sell or option out its remaining BC assets (Haskins-Reed or Weaver Gold) to satisfy outstanding payables.
* Creditor Actions: Given the high level of trade payables relative to cash, monitor for any legal filings or liens from service providers.
Materiality Conclusion
* This news is Material and Negative. The loss of the flagship acquisition and the failure of two consecutive financing attempts leaves the company with a crippled balance sheet and no clear path to value creation. The “pivot” to BC projects is unsupported by the current cash balance.
