Prismo Metals to Advance Hot Breccia Toward Drilling Through Strategic Transaction

Prismo Metals Inc. has entered into a definitive assignment agreement with private company Blade Resources Inc. to transfer all rights to its Hot Breccia copper project in Arizona's copper belt. The transaction, expected to close around March 2026, will see Prismo receive $185,000 in cash and 6,755,000 common shares of Blade, making Prismo Blade's largest single shareholder with approximately 24% ownership.

The strategic transaction is designed to advance Hot Breccia toward its first drill program while providing Prismo with enhanced capital access without direct dilution to its shareholders. Hot Breccia is positioned in the heart of Arizona's copper belt, near major deposits operated by Freeport McMoRan, BHP, and Rio Tinto. Since optioning the project in January 2023, Prismo has evaluated various development pathways and concluded that partnering with Blade, which has backing from parties with strong capital-raising track records, represents the optimal approach.

The structure provides multiple strategic benefits for Prismo, including maintaining significant upside exposure through its Blade shareholding while allowing the company to focus resources on advancing its remaining Arizona projects, Silver King and Ripsey Gold. Prismo will retain board representation rights and participation rights in future Blade equity offerings to maintain its ownership percentage. The transaction also positions Blade as a dedicated vehicle for Hot Breccia development, potentially making it more attractive to major mining companies or strategic buyers.

The underlying landowner, Walnut Mines LLC, has endorsed the transaction as a pathway to achieve serious drilling at Hot Breccia in 2026. This corporate restructuring reflects broader industry trends toward focused vehicle strategies and strategic partnerships to advance exploration projects in capital-intensive environments. The transaction represents a model for junior miners seeking to maintain project exposure while accessing enhanced development capabilities through specialized partnerships.