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MSA: Initial MRE at the Guillermina Deposit, Hemco Property

What you need to know:
• Mineros announced an initial Mineral Resource Estimate for the Guillermina Deposit at its Hemco Property in Nicaragua.
• On July 21st, MSA announced the appointment of David Splett as the new CFO of the Company.
• Sun Valley has acquired 23.9M shares via a public tender on the Colombian Stock Exchange at COP$5,500/share.
• MSA will report Q2 financial and operating results on August 12th after market close with the conference call on August 13th at 10AM ET.

This morning, Mineros S.A. (MSA:TSXV, MINEROS:CL) announced an initial resource estimate on Guillermina, a vein system located 3km north of the Porvenir Project, part of the Hemco Property in Nicaragua. The MRE follows a string of positive developments, including a completed tender offer, a newly launched buyback program, and upcoming Q2 results that we expect to reflect strong operational execution. We recently initiated coverage on Mineros, read the report here. We are maintaining our BUY rating and C$4.00/share target price on Mineros.

The resource estimate on Guillermina includes the results of 9,798m in 61 diamond drill holes completed between 2011 and August 2024.

Resource Highlights:
• Indicated Mineral Resources: 129Koz AuEq at 3.13 g/t - 30Koz Au (0.71 g/t), 962Koz Ag (23.3 g/t), 187Mlbs Zn (6.60%)
• Inferred Mineral Resources: 152Koz AuEq at 3.66 g/t – 55Koz Au (1.32 g/t), 1,250Koz Ag (30.2 g/t), 162Mlbs Zn (5.73%)
• Guillermina remains open both along strike and to depth and could be a key contributor to the potential future development of the Porvenir Project

Sun Valley Investments Tender Offer
On June 17th, MSA announced that the Colombian Superintendent of Finance accepted Sun Valley’s public tender to acquire 24-33M shares (8-11%) through the Colombian Stock Exchange at COP$5,500/share. The tender ended on July 8th, with Sun Valley purchasing 23.9M shares, representing nearly 8% of the shares outstanding. Following the purchase, Sun Valley is expected to own and exercise control over 65% of the shares outstanding.

Buyback Program
On July 18th, Mineros announced that its board has authorized a share repurchase program for up to US$12M through the Colombian Stock Exchange. Management restated its commitment to create value for shareholders and its confidence in its balance sheet and future cash flows.