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MSA: Completes Acquisition of La Pepa & Other Updates

What you need to know:
• Mineros completed the $40M acquisition of La Pepa, securing full ownership of the advanced exploration project in Chile’s Maricunga Belt.
• MSA is exploring debt financing as a non-dilutive path to fund growth, alongside its recently completed $12M share repurchase program.
• Ramp-up of the new Aurora plant and recovery projects at Nechi are expected to boost throughput and support margins.
• We are increasing our target price from C$4.00/share to C$5.50/share.

Yesterday, after market close, Mineros S.A. (MSA:TSX, MINEROS:CL) announced it has completed the acquisition of the remaining 80% interest of the La Pepa Project from Pan American Silver (PAAS:TSX) for $40M, securing full ownership of the advanced exploration asset in Chile’s Maricunga Gold Belt. In addition to the closing of this deal, the Company is advancing debt financing options to support growth, completed a $12M share repurchase program, and production initiatives at its Nechi Alluvial Property are progressing well, with the new Aurora plant expected to reach full capacity by Q4/25. We are maintaining our BUY rating and increasing our target price to C$5.50/share (previously C$4.00/share) on Mineros S.A.

We remind readers that on August 11th, Mineros originally announced its plan to acquire full ownership of the La Pepa Project from Pan American Silver (see our note here). Though producing and late-stage development assets remain the priority, this acquisition adds exposure to earlier-stage projects, strengthening the Company’s long-term growth profile. La Pepa is envisioned as an open-pit, heap-leach operation hosting Measured Resources of 1.15Moz Au, Indicated Resources of 1.04Moz Au, and Inferred Resources of 0.37Moz Au. We are not currently assigning any value to the project in our valuation analysis.

Corporate Updates
Over the last month, Mineros has advanced several initiatives aimed at strengthening both its financial profile and production outlook. The Company is exploring debt financing as a non-dilutive funding source while also recently completing a $12M share repurchase program that reduced the share count and returned capital to shareholders.

At the same time, the new Aurora plant and recovery projects at Nechi are expected to enhance throughput and support stable margins despite higher ore costs amid rising gold prices (>$3,800/oz). Taken together, these efforts reflect a balanced approach to growth, capital returns, and operational efficiency (see below for more detail).