#Argentina #San Juan #Orvana Minerals #Taguas Property #NSR Interest

Orvana Minerals Enhances Its Interest in Taguas Property

In a significant move for the mining sector, Orvana Minerals Corp. (TSX: ORV) has announced its decision to reacquire a 1% net smelter return royalty (NSR) on the Taguas Property located in the province of San Juan, Argentina. This strategic acquisition, formalized in an agreement with Compañía Minera Taguas S.A., marks a pivotal point in Orvana's operations as it seeks to optimize long-term value from the Taguas site.

Initially, Compañía Taguas was granted a 2.5% NSR during Orvana's purchase of the Taguas Property in 2021, which has now been revised. With this reacquisition, Orvana will own 1.0% NSR, while the remaining 1.5% NSR will remain with Compañía Taguas. Notably, Orvana's subsidiary retains full ownership of the Taguas Property itself.

According to Orvana’s CEO, Juan Gavidia, this agreement reflects the company's commitment to enhancing the project's potential. He stated, "Our exploration team is preparing for a geophysical survey and deep‑drilling program that will test the property's gold-copper porphyry potential."

Financial Details of the Reacquisition

The purchase price for the 1% NSR has been set at $5.6 million, which will be paid in several installments through October 2028. The NSR transfer will be officially effective upon the progression of the first installment of $1.4 million, expected by October 31, 2025. The scheduled payments are:

• - Initial payment of $1,000,000 within 5 days of signing the agreement
• - $400,000 by October 31, 2025
• - $1,400,000 by October 31, 2026
• - $1,400,000 by October 31, 2027
• - $1,400,000 by October 31, 2028

This structured payment system allows Orvana to manage its financial flow effectively while securing a valuable interest in the property.

Strategic Advantages of the Move

Reacquiring part of the NSR is expected to bring several strategic advantages:

• - Reduced Royalty Obligations: This transaction lowers the third-party royalty burden from 2.5% to 1.5%, allowing for better cash flow and enhancing the project's net present value.
• - Increased Flexibility for Partnerships: By maintaining a more favorable NSR position, Orvana enhances its attractiveness for potential partners, joint ventures, or project financing initiatives.
• - Continued Financial Interest: Retaining a 1% NSR ensures that Orvana maintains a direct financial interest in Taguas' future production and the commodity price fluctuations that could benefit the company's revenues.

Readers should be mindful that forward-looking statements regarding project expectations come with risks and uncertainties. The anticipated improvements depend significantly on future exploration results, commodity price trends, and regulatory approvals.

About the Taguas Property

The Taguas Property encompasses 15 mining concessions spread across 3,273.87 hectares, positioned in the eastern Andes approximately 10 km south of Atex Resources' Valeriano project, 16 km south of the El Encierro project operated by Barrick and Antofagasta, and 20 km north of Barrick and Shandong Gold Group's Veladero project.

Recent updates to the geological model indicate a committed effort to bolster the understanding of mining possibilities within the oxide-sulphide transition zone. The next phase involves a geophysical survey aiming to delineate prospective targets at depths up to 1,500 meters. Orvana plans to commence deep exploration drilling in 2026, based on the findings from geological modeling and geophysical surveys.

Related Transaction and Regulatory Compliance

It’s essential to note that this reacquisition involves certain complexities; Minera S.A., the parent company of Compañía Taguas, also owns a significant share of Orvana, making it a related-party transaction. However, this was approved unanimously by Orvana's Board of Directors, and the Toronto Stock Exchange has granted conditional acceptance of the transaction.

Orvana Minerals Corp. represents a robust entity within the gold, copper, and silver mining sector with operational assets across Spain, Bolivia, and Argentina. This latest development in the Taguas Property signals a decisive move toward maximizing resource potential amidst a landscape of continual exploration and strategic growth.

For further details regarding this acquisition and Orvana's extensive operations, visit their official website at www.orvana.com.