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Stakeholder Commissions New Quarry in Brazil

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Stakeholder Commissions New Quarry in Brazil

Executive Summary

Stakeholder Gold Corp. has announced a strategic acquisition in Brazil's natural stone sector through its wholly owned subsidiary Mineração VMC Ltda. The company has entered into an agreement to purchase a 50% ownership interest in a fully licensed quarry in Uruoca, Ceará, Brazil, which produces premium quartzite known commercially as 'Taj Mahal'. This acquisition represents VMC's fourth operating quarry in Brazil and positions the company to capitalize on strong global demand for this high-end natural stone product.

The financial terms of the transaction total BRL 3,000,000 (CAD 763,500), structured to provide operational flexibility during the scaling phase. The payment structure includes BRL 900,000 satisfied through financing of excavating equipment, an immediate cash payment of BRL 100,000, and deferred payments of BRL 600,000 over two years and BRL 1,400,000 over the quarry's operational life, both without interest charges. This arrangement allows VMC to minimize immediate cash outlay while securing operational control of a premium asset.

The market opportunity for Taj Mahal quartzite appears compelling, with producers currently unable to meet global demand and VMC already securing pre-orders from key clients. The quarry is expected to reach full-scale commercial production of 200 cubic meters per month following a 2-4 month expansion period. Management expects this acquisition to significantly increase VMC's revenue in 2026 and create multiplicative effects on sales from the company's other operating quarries.

This acquisition aligns with Stakeholder's broader corporate strategy of developing profitable cash-generating operations in Brazil while minimizing share dilution, thereby funding exploration activities on its Ballarat Gold-Copper Project in Yukon's White Gold District. The dual-asset approach allows the company to maintain exploration momentum on its Canadian gold and copper prospects while building a stable revenue base through Brazilian stone operations, potentially creating a more resilient business model for shareholders.
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