Mogotes Metals Inc

Management frames the investment case around three points of comparison rather than a broad peer set: the Vicuña district has produced two significant companies to date, Filo Mining, whose Filo del Sol discovery was acquired by BHP and Lundin Mining for approximately C$4.5 billion, and NGEx Minerals, whose Lunahuasi discovery is currently capitalised at approximately C$6 billion, and Mogotes Metals is positioned as the third route to exposure to the belt. At a market capitalisation of approximately C$267 million as at July 5, 2026, that leaves a wide valuation gap relative to the two companies it sits beside, despite Filo Sur sharing the same age of mineralisation, the same alteration system by satellite imagery analysis, and the same geophysical vectoring signature that identified Filo del Sol. BHP and Lundin Mining's outright ownership of Filo del Sol has removed it as an investable route into the district. A preliminary economic assessment disclosed by Lundin Mining for Filo del Sol cites a net present value of C$9.5 billion at an 8% discount rate, a 70-year mine life and average annual free cash flow of C$2.2 billion; a figure that speaks to the scale of the belt rather than to Mogotes's own project economics, which do not yet exist at the exploration stage; the company's own case rests on the district's proven mineral endowment and multiple discoveries rather than on economic studies of its own ground.

The Vicuña thesis is supported by physical adjacency rather than inference alone: Filo Sur directly adjoins the southern limit of the Filo del Sol resource, and copper-in-soils anomalism is continuous across the boundary from Filo del Sol into Filo Sur. Two seasons of first-pass drilling have already returned porphyry- and epithermal-style intercepts consistent with mineralisation styles documented at Filo del Sol in the peer-reviewed geological literature, and the Sol Target Cluster provides several additional untested, near-surface targets still to be drilled.

CD Capital, founded and led by Carmel Daniele, is a significant shareholder in Mogotes Metals. Daniele previously served on the board of Filo Corp through its C$4.5 billion acquisition by BHP and Lundin Mining, having identified and invested in that opportunity ahead of its discovery, and she currently sits on the board of Lundin Gold (TSX: LUG); she joined Mogotes's board on the basis of a similar early-stage thesis. Carlos Braun, Director, represents the Braun family, a prominent Argentinian family office whose enterprise and agricultural interests in the country span more than 130 years and who have provided financial backing to the company.

Allen Sabet, Chief Executive Officer, President and Director, previously served at Australian private prospecting group Syndicate Minerals and was a consultant with McKinsey & Company, advising top-tier mining and resource companies, including Woodside, South32 and Shell, on turnarounds and transformations. Anees Sabet, Director and VP Corporate Development, has more than 15 years of experience across a range of industries, including one of Australia's largest e-commerce groups, co-founded Syndicate Minerals with Allen, and is a Non-Executive Director of Peregrine Gold (ASX: PGD).

Peter Mullens, Chairman, brings more than 35 years of mining experience, including 25 years in Argentina, having served as exploration manager for Mt Isa Mines Argentina, Chief Geologist at Aquiline Resources, and Co-Founder and Director of Lydian Resources; he currently chairs Argentina-focused silver developer Unico Silver (ASX: USL). Philip Williams, Director, has more than 20 years of mining and finance experience, including as VP Business Development at Pinetree Capital, Managing Director at Dundee Capital Markets, Co-Founder, President, CEO and Director of Uranium Royalty Corp, and CEO and Director of IsoEnergy Limited (TSX: ISO).

Stephen Nano, Director, has more than 30 years of experience as an economic geologist with significant South American exposure and specific expertise in epithermal gold-silver and porphyry copper systems, having founded and served as VP Exploration and CEO of Mirasol Resources (TSXV: MRZ). Eric Myung, Chief Financial Officer, has more than 15 years of accounting experience and currently serves as CFO of Arizona Metals, Labrador Gold, Sokoman Minerals, Madison Metals, Goldseek Resources, Melkior Resources and City View Green Holdings.

Management points to three developments underpinning the next phase of growth. First, the company delivered two new discoveries at Filo Sur in a single season, Albor and Cruz del Sur, an outcome it describes as unusual for a junior explorer and one it aims to extend further in future seasons; the Sol Target Cluster at Luz del Sol, Meseta and Cuenca represents the next phase of drill targets, each on-trend with Filo del Sol and supported by anomalous rock-chip and geophysical data. Second, Rio Tinto is joining the Mogotes share register as part of financings currently being closed, at a premium to the prevailing share price, a step management characterises as a strong external validation and a route to the major's technical, geoscience and geophysical expertise across the portfolio. Third, the company expects to close two financings that management indicates will leave the company with approximately C$70 million in cash, funding a stated 2026-27 drilling programme of approximately 80,000 metres split across the three projects: roughly 50,000 metres in Kazakhstan, where drilling costs are lowest, 20,000 metres at Filo Sur, and 10,000 metres at Copper Cliffs.

Beyond Filo Sur, the three-year option over Beskauga provides a pathway to control an asset with an existing historical resource estimate and identified upside through resource expansion and new target generation, while the option to joint venture up to 60% of Copper Cliffs, structured as a US$16 million, three-year stage-one earn-in for 51%, provides exposure to a Tier-1 jurisdiction asset that has not been drilled since 2017 despite an existing 1,048-metre mineralised intercept at Hole 17CC0022. Management frames the common thread across all three assets as copper systems in geological settings that have already produced tier-one outcomes, acquired on capital-efficient terms, in jurisdictions where drilling and permitting can practically proceed, and at a project stage where the company is drilling into, or immediately beside, an established discovery rather than testing unproven ground. Filo Sur drills during the Southern Hemisphere summer while Beskauga and Copper Cliffs are active during the Northern Hemisphere summer, a structure management presents as reducing the quiet-period risk that typically affects single-asset exploration companies by generating catalysts across the full calendar year.

As at close on July 5, 2026, Mogotes Metals reported cash and equivalents of C$40.1 million, 523 million common shares outstanding, together with 193 million warrants and options outstanding at strike prices ranging from C$0.10 to C$0.53 and expiries between October 2027 and January 2029. On August 13, 2026, the Company closed an offering of 39,186,369 common shares at C$0.49 per share for gross proceeds of approximately C$19.2 million, issued pursuant to pre-emptive rights agreements and taking CD Capital's ownership interest to 19.9% on a partially diluted basis; insiders purchased the substantial majority of the shares issued, and the offering was completed as a related-party transaction under applicable minority shareholder protection rules.

On August 27, 2026, the Company separately closed a US$15 million (C$21,271,500) strategic placement with Rio Tinto Canada Inc., an affiliate of Rio Tinto Exploration Canada Inc., which subscribed for 30,387,857 units at C$0.70 per unit, each comprising one common share and one-half of a warrant exercisable at C$1.00 for 18 months; the placement gives Rio Tinto an initial ~5% interest in the Company, and full exercise of its warrants would represent up to a further C$15.2 million in proceeds. Concurrent with that closing, existing investors exercised further pre-emptive rights for an additional 7,970,945 units at the same offering price, raising a further C$5.6 million.

Across both August closings, the Company raised approximately C$46.1 million in gross proceeds and issued approximately 77.5 million common shares, taking shares outstanding to approximately 600.5 million; combined with the C$40.1 million reported as at July 5, gross cash raised since that date totals approximately C$86.2 million, before fees and ongoing exploration and corporate expenditure. Proceeds from the Rio Tinto placement are earmarked for work programmes at Filo Sur, while proceeds from the CD Capital-related offering are for general corporate and working capital purposes. Rio Tinto has also been granted a 15-month exclusivity period on Filo Sur (extendable by six months), a right to match third-party proposals during that period, a top-up right to acquire up to 9.99% of Common Shares, and customary pre-emptive rights to maintain its proportionate ownership. Existing shareholders prior to these transactions included CD Capital, the Braun family, Crescat Capital and Syndicate Minerals, alongside a broader base of institutional, high-net-worth and retail holders; institutional holders excluding named strategics accounted for approximately 22% of the share register as at the July 5 date, with high-net-worth, retail and other holders making up 36%.

• Commodity Price Volatility: Filo Sur, Beskauga and Copper Cliffs are all copper-gold(-silver) systems, and project economics across the portfolio are sensitive to fluctuations in copper, gold and silver prices, as well as to Canadian dollar, Argentine peso and Kazakhstani tenge exchange rates. The polymetallic character of each deposit, with copper, gold, and, at Beskauga and Filo Sur, silver and molybdenum credits, diversifies revenue exposure across multiple commodities rather than concentrating it in a single metal.
• Regulatory & Permitting Risks: The company operates across three distinct jurisdictions, Argentina and Chile, Kazakhstan, and the United States (Montana), each with its own mining legislation, subsoil use regime, and permitting process, and the company has flagged risks including changes to mining legislation, tax regimes, and environmental legislation, including restrictions on water usage and operations around glaciers in the Andes. Montana, in particular, is described as a Tier-1 jurisdiction, and the Filo Sur ground sits within an established, actively permitted district given the scale of adjacent development activity by Lundin Mining, BHP and NGEx Minerals.
• Technical & Operational Risks: The Beskauga resource estimate referenced in company materials is explicitly treated as a historical estimate under NI 43-101, prepared in 2022 and not verified, classified or relied upon by the company's Qualified Person as a current mineral resource; upgrading it is expected to require compilation and independent verification of the historical drill database, integration of 18,657 metres of post-resource drilling, an updated geological model, and, if warranted, further drilling. Results at Filo Sur, including the Albor discovery hole, also remain partial, with assays pending for a substantial portion of at least one key intercept. Inferred resources, where referenced across the portfolio, carry a high degree of uncertainty as to their existence and economic viability, and none of the three projects currently has a defined mineral reserve.
• Environmental & Social Risks: Exploration activity in the Andes is subject to restrictions specific to high-altitude and glacial environments, and the company's disclosed risk factors identify social or community opposition to mining activities and the requirement to obtain and maintain federal, state and local permits, including surface-use and environmental review requirements, as relevant considerations in Montana. Environmental baseline work and community engagement processes are jurisdiction-specific and will need to be advanced in parallel with each project's technical work programme.
• Financing Risk: The closed Rio Tinto placement and associated pre-emptive rights exercise added approximately C$26.9 million in gross proceeds to the C$40.1 million reported as at July 5, 2026, materially strengthening the balance sheet for the stated multi-project drilling programme in the near term; the Company's actual cash position will also reflect fees and ongoing exploration and corporate expenditure since that date. Advancing Beskauga toward a verified resource, taking Copper Cliffs through further step-out drilling, and funding continued exploration at Filo Sur beyond the current programme will require sustained capital across three concurrent workstreams, and Rio Tinto's pre-emptive and top-up rights could affect the terms on which future capital is raised. Any additional equity financing would be dilutive, and its terms will depend on prevailing market conditions and exploration results.
• Execution Risk: The company's growth strategy depends on the successful execution of option and option-to-joint-venture agreements at both Beskauga and Copper Cliffs, including meeting staged funding and work commitments, as well as on organic exploration success at Filo Sur and effective operation of the new Rio Tinto alliance, including its 15-month exclusivity period. Operating three projects across three jurisdictions and two hemispheres of drill seasons is intended to spread catalyst risk, but it also requires the company to manage technical, financing and regulatory workstreams concurrently rather than sequentially.

Mogotes Metals presents a defined profile: an exploration-stage flagship asset positioned directly against the two companies management regards as the Vicuña district's defining outcomes to date, Filo Mining, acquired for C$4.5 billion, and NGEx Minerals, currently capitalised at approximately C$6 billion, trading at a market capitalisation that represents a small fraction of either, and supported by two option-stage assets in Kazakhstan and Montana that provide additional, non-Vicuña catalysts. The Albor and Cruz del Sur discoveries at Filo Sur remain open, a cluster of untested, on-trend targets at Luz del Sol, Meseta and Cuenca is queued for drilling, Rio Tinto has closed a US$15 million strategic investment and entered a Strategic & Technical Alliance on Filo Sur, and a roughly 80,000-metre drilling programme is planned across all three projects in 2026-27. The primary variables from this point are the outcome of pending Filo Sur assays, the results of first-pass drilling on the Sol Target Cluster, the early operation of the Rio Tinto alliance, and the pace at which the company advances its option obligations in Kazakhstan and Montana.