Defiance Silver Secures Agreement to Move Tepal Project Forward

Defiance Silver has announced that it has reached a six-year agreement that grants the company the rights to conduct surface exploration, drilling, and engineering studies in support of its Tepal Gold-Copper Project located in Michoacan. The agreement also enables the company to collect essential data required for the submission of permit applications to advance the development of the project.

As consideration for these rights, the company will make annual cash payments, indexed to the annual rate of inflation in Mexico, and issue common shares with a total annual value of US$40,000/year to the surface rights holder. Over the six-year term, the total number of shares issued will not exceed 1,400,000.

For the upcoming year, the company will issue 201,452 common shares at a deemed price of C$0.27 (US$0.20) per share to the counterparty. This remains subject to approval from the TSX Venture Exchange.

Besides Tepal, the company is looking to strengthen its position in Mexico. In April, Defiance Silver entered a non-binding letter of intent (LOI) to acquire Green Earth Metals Inc. (GEMS), a private company with a portfolio of exploration assets in Mexico.

GEMS is based in British Columbia and holds rights to three copper-gold-silver-molybdenum projects in the Sonoran Desert porphyry copper belt. These projects span over 6,700ha and are already permitted for drilling, presenting Defiance with a ready-to-explore pipeline of high-quality assets. The GEMS portfolio includes the Victoria, Espiritu, and Los Ocotes projects. These are located near the La India Mine operated by Agnico Eagle, Alamos Gold’s Mulatos Mine, Pan American Silver’s Dolores Mine, and Grupo Mexico’s Cananea and La Caridad operations. While this proximity suggests promising mineral potential, Defiance clarified that neither the company nor its qualified personnel have independently verified technical data related to these neighboring mines, and such information should not be considered indicative of mineralization on the GEMS properties.