News Summary
The most recent news (December 23, 2025) announces a definitive option agreement with J2 Metals Inc. regarding a 22 km² portion of IMPACT’s Zacualpan S.E. district (the Sierra Plata Project). Under the terms, J2 Metals can earn a 100% interest by:
– Issuing $250,000 in subscription receipts/shares to IMPACT upon approval.
– Incurring $1.35 million in exploration expenditures over three years.
– Making staged share payments totaling 6,500,000 shares of J2 (with cash options).
– IMPACT retains a 1.5% Net Smelter Return (NSR) royalty, half of which can be bought back for $1.5 million.
Material Impact
This news is a classic “project farm-out” strategy. It is materially positive but not a “game-changer” for the current valuation.
– Capital Preservation: IMPACT avoids spending its own cash or human resources on regional exploration in the S.E. portion of its district.
– Strategic Focus: The company is explicitly prioritizing its core brownfield production at the Zacualpan complex and the Plomosas Zinc mine.
– Non-Dilutive Upside: IMPACT gains equity exposure to a junior explorer (J2 Metals) and retains a long-term royalty interest.
– Context: Given that IMPACT recently raised $16 million (September 2025) and is still working through the rehabilitation of the Plomosas mine, offloading non-core exploration helps maintain a lean operational focus.
Catalysts
– Plomosas Production Levels: The company is aiming for a design capacity of 200 tpd. Q3 2025 results showed the mill is running but requires “additional rehabilitation” to be sustainable. Watch for a news release confirming steady-state 200 tpd throughput.
– Kena Vein Mining: First tonnes were extracted recently; look for grade confirmations from the actual mining face compared to drill results (which showed 534.8 g/t Ag over 8.5m).
– Profitability Pivot: Despite record silver prices, IMPACT reported a net loss of $0.6M in Q3 2025. Watch for the first quarter of “Clean Net Income” without heavy exploration/deferred tax adjustments.
Materiality Conclusion
The J2 Metals agreement is a routine but smart management move. It monetizes secondary assets while the company focuses on the execution risk at Plomosas. The $16 million bought deal in late 2025 provides enough runway to achieve these goals without immediate further dilution.
