Minera Alamos Transforms Into Multi-Asset Gold Producer Through Nevada Acquisition

• Minera Alamos acquired Nevada assets from Equinox Gold, including the producing Pan mine (35-40K oz/year) and the Gold Rock development project, positioning the company as a significant gold producer.
• The company plans to optimise Pan production to 50-55K oz/year, then develop Gold Rock to achieve combined production of 100-110K oz/year at competitive costs ($1,500-1,600/oz).
• Cash flow from Pan will eliminate the need for dilutive project financing, enabling internal funding of Copperstone (Arizona) and Cerro de Oro (Mexico) developments.
• The transaction shifts Minera Alamos from developer to producer status, with potential to move from current 0.2x NAV trading multiple toward peer group average of 0.8x NAV.
• Nevada assets provide jurisdictional diversification beyond Mexico, removing regulatory overhang concerns while maintaining full exposure to Mexican project upside once permits are secured.

Minera Alamos has executed a transformational acquisition that fundamentally reshapes its investment profile. On August 7th, 2025, the company announced the purchase of Nevada gold assets from Equinox Gold, including the operational Pan mine and the advanced-stage Gold Rock project. This transaction represents a strategic inflection point, converting Minera Alamos from a development-focused junior into a meaningful gold producer with a clear pathway to 100,000+ ounces of annual production. The acquisition provides immediate cash flow generation, jurisdictional diversification, and the financial foundation to advance a portfolio of high-quality North American gold projects without dilutive capital raises.

Immediate Production Drives Cash Flow Generation

The Pan mine delivers immediate production of 35-40,000 ounces annually with all-in sustaining costs consistently maintained between $1,450-1,650 per ounce over recent years. This established operation has demonstrated remarkable resource replacement success since Fiore Gold first brought it into production in 2017 with 27 million tons of material. Through systematic exploration by subsequent operators, the resource base has grown to 34 million tons, reflecting consistent reserve replacement that has extended mine life despite ongoing production.

Management has identified near-term optimisation opportunities that could increase production to 50-55,000 ounces annually. The primary enhancement involves upgrading the crushing circuit for approximately $2 million in capital expenditure, with implementation expected within six to eight months. This modest investment promises significant production uplift with minimal execution risk at an established operation.

The cash generation from Pan fundamentally changes Minera Alamos's development trajectory. Rather than seeking project financing or conducting dilutive equity raises for each development stage, the company can now bootstrap subsequent projects from operational cash flow. In the current gold price environment, Pan's margins provide substantial financial flexibility to advance the broader portfolio while maintaining shareholder value.

Gold Rock: Doubling Production Potential

Located just eight kilometers south of Pan, Gold Rock represents a near-term production catalyst that could double the Nevada operation's output. The project benefits from its proximity to existing infrastructure and represents a classic Carlin-type gold system with significant expansion potential. Updated technical reports for both Pan and Gold Rock are forthcoming, which management expects will demonstrate the economic viability of treating these as an integrated operation capable of producing 100-110,000 ounces annually at costs similar to Pan's historical performance of $1,500-1,600 per ounce.

The Gold Rock system extends across a 16.5-kilometer mineralised trend hosted within favorable structural geology. Historical drilling approximately 1.5 kilometers from the current planned pit has intercepted significant oxide mineralisation, with intervals of 40-50 meters grading between 0.9-1.0 grams per ton gold. This demonstrates the system's continuity and suggests substantial resource expansion potential beyond the current development plan.

The strategic value of Gold Rock extends beyond its standalone economics. By leveraging shared infrastructure with Pan and sequencing development to match cash flow availability, Minera Alamos can bring this project into production without traditional project financing. The integrated Nevada operation will provide robust cash generation to fund development of Arizona and Mexican assets while maintaining financial flexibility through commodity price cycles.

Exploration Upside Across the Portfolio

A compelling aspect of the Nevada assets is their exploration potential, which addresses investor concerns about mine life. While Pan currently carries an eight-year reserve estimate, management believes systematic exploration could extend this to twelve years or beyond. There are many prospective areas at Pan that remain underexplored, while Gold Rock's extensive mineralised trend offers multiple expansion opportunities.

The exploration opportunity extends across Minera Alamos's entire portfolio. At Copperstone in Arizona, substantial exploration potential exists around the known deposit. The Cerro de Oro project in Sonora, Mexico represents a particularly significant opportunity, with current resources of approximately 67 million tons averaging 0.8 grams per ton for roughly 800,000 ounces. This large mineralised system remains open for expansion and represents one of the primary attractions for management's engagement with the company.

This exploration upside provides multiple avenues for resource growth that can enhance project economics and extend production profiles. The strategy recognises that junior mining companies often create substantial value through systematic exploration of known mineralised systems, particularly when exploration can be funded from operational cash flow rather than requiring dedicated equity raises.

Jurisdictional Diversification Reduces Regulatory Risk

The Nevada acquisition strategically diversifies Minera Alamos's jurisdictional exposure beyond Mexico. While the company maintains three Mexican projects - Santana, Cerro de Oro, and La Fortuna - that represent significant value, permitting timelines in Mexico remain uncertain. The Copperstone acquisition had previously added Arizona exposure, but Nevada's addition creates a predominantly U.S.-focused production profile with Mexican assets positioned as high-quality growth options.

This diversification removes a perceived cap on the company's valuation. Investors had previously viewed Minera Alamos primarily as a development story dependent on Mexican regulatory approvals. The Nevada and Arizona production profile eliminates this dependency while maintaining full optionality on Mexican assets. Management remains confident in ultimately securing Mexican permits but has removed the business risk of depending on government timelines for operational execution.

Nevada's status as a premier mining jurisdiction enhances the company's appeal to institutional investors. The state offers stable regulatory frameworks, established mining infrastructure, and favorable fiscal terms. This jurisdictional quality supports higher valuation multiples and broader investor participation, particularly as the company pursues NYSE listing eligibility and index inclusion.

Capital Markets Strategy Enables Valuation Re-Rating

The transaction catalyses a fundamental re-rating of Minera Alamos's market valuation. The company currently trades at approximately 0.2x net asset value, reflecting its historical positioning as a small producer and developer. Peer group producers with similar asset quality trade near 0.8x NAV, suggesting substantial upside as Minera Alamos executes its production growth strategy.

Management has articulated a clear capital markets roadmap. The company completed a $100 million financing in conjunction with the acquisition, with strong institutional participation including significant commitments of $10-20 million from funds with track records of following management's previous successes. This institutional foundation provides both capital and credibility for the enlarged company.

A key milestone involves pursuing NYSE listing and index inclusion. Minera Alamos will meet trading requirements for Russell 3000 and GDXJ inclusion, though achieving the necessary trading volume will require focused effort. Management targets index inclusion in the second half of the following year, which would drive substantial passive investment flows and increase market visibility. 

Development Sequencing Maximises Capital Allocation

Management has established a disciplined approach to capital allocation focused on maximising earnings per share. The development sequence prioritises Pan optimisation first, followed by Copperstone development, then either Cerro de Oro or Gold Rock depending on permitting timelines. This sequencing ensures each project funds the next, avoiding dilutive capital raising while maintaining development momentum.

The Copperstone project in Arizona represents the next development priority after Pan optimisation. This permitted heap leach operation can be advanced using cash flow from Nevada operations, with construction timelines to be determined as the team integrates and optimises the Pan operation. The project benefits from existing permits and represents relatively straightforward heap leach development in a favorable jurisdiction.

The strategic flexibility extends to running optimisation scenarios at higher gold prices. Historical resource and reserve estimates at both Pan and Gold Rock used gold prices around $1,700 per ounce. Re-running pit optimisation at $2,000-2,200 gold prices could materially expand resources and reserves by bringing lower-grade material into economic viability. This optimisation work will inform updated technical reports and potentially enhance the scale of both Nevada operations.

TL;DR

Minera Alamos has transformed its investment profile through the acquisition of Nevada's producing Pan mine (35-40K oz/year) and development-stage Gold Rock project from Equinox Gold, creating a pathway to 100,000+ ounces of annual production. The transaction eliminates the need for dilutive project financing by generating cash flow to self-fund development of Copperstone (Arizona) and Cerro de Oro (Mexico), while shifting the company from developer to producer status with potential to re-rate from 0.2x to 0.8x NAV like peer producers. Management's proven playbook, jurisdictional diversification into tier-one Nevada, and upcoming NYSE listing position the company for significant value creation.

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