Prime Mining Corp.

Prime Mining Corp. is a junior gold and silver exploration company headquartered in Vancouver, Canada, operating primarily in Mexico. The company's portfolio consists of 1 advanced exploration project. Key assets include Los Reyes. The company's business model is centered on the acquisition, exploration, and development of mineral properties, currently focusing on advancing a single project from exploration to development. Operational activities are speculative and high-risk, involving systematic exploration programs that utilize diamond drilling, trenching, and comprehensive sampling to define and expand mineralization. The enterprise has evaluated multiple processing methodologies to support future development, including a dual-stream approach combining conventional milling and heap leaching. Planned metallurgical processes involve multi-stage crushing to fine specifications, gravity concentration, and agitated cyanide leaching to optimize recovery rates. The business relies on a skilled workforce of contractors and consultants with specialized expertise in geology, engineering, and mining. Competitive conditions require the organization to contend with numerous other entities, some with greater financial resources, for capital, personnel, and attractive mineral prospects. The operational approach is characterized by a technical, data-driven evaluation of mineral deposits to determine commercial viability based on geological attributes and amenability to established extraction techniques.

Strategic focus is on advancing its principal asset through a phased exploration approach designed to support future economic studies. The exploration strategy bifurcates into resource drilling, aimed at expanding known deposits along strike and at depth, and discovery drilling, which tests new, high-priority targets identified through geological mapping and sampling. Management's objective is to delineate additional resources sufficient for inclusion in a preliminary economic assessment, which would analyze processing methodologies, mining methods, and overall project economics. The entity has historically funded its activities through equity financings and anticipates requiring additional capital to execute its development programs. A key strategic move was the graduation to the TSX in 2023, intended to enhance liquidity and access a broader base of institutional investors. Future exploration, including a recommended 20,000-metre drill program, is contingent on market conditions and the overall project development strategy, with an emphasis on adding inferred-level resources before commencing a preliminary economic assessment.

Executive leadership is headed by CEO Scott Hicks, who was appointed in February 2024 and previously served as a senior executive at Kinross Gold Corporation. The board of directors is composed of 9 members, with 7 directors being independent, ensuring robust oversight. Governance is structured through 4 standing committees: Audit; Health, Safety, Environment, and Social Responsibility; Compensation and Human Resources; and Nominating and Corporate Governance. The Audit Committee, comprising 4 independent and financially literate members, operates under a detailed charter that includes direct oversight of the external auditor and pre-approval of all audit and non-audit services. Directors and executive officers as a group beneficially own approximately 8.81% of the company's outstanding shares, with 1 insider holding a 5.33% stake, aligning leadership interests with those of shareholders. The board addresses potential conflicts of interest through established disclosure protocols and adherence to corporate law, relying on the fiduciary duties of its members.

The organization's approach to sustainability is demonstrated through proactive environmental and social management initiatives. A comprehensive environmental study was completed in 2022 to establish baseline conditions and facilitate future permitting, with the company reporting full compliance with applicable laws and no regulatory sanctions. Community relations are formalized through a 15-year renewable surface rights agreement signed in 2020 and expanded in 2023, which guarantees access for exploration and operations while providing a compensation structure for landowners. This agreement was informed by a socioeconomic baseline study conducted in 2021 to understand local dynamics. The company has also increased its public disclosure on sustainability matters, publishing its inaugural report in 2022 and a second report in 2024. Management acknowledges and plans for risks associated with water supply, which is critical for operations in a region with seasonal variability, and has documented the area's environmental conditions to monitor future changes.

The company's current structure was established through a series of transactions beginning in 2019, when it acquired the rights to its material project via an assignment agreement with Minera Alamos Inc. This transaction involved assuming an option agreement originally held with Vista Gold Corp. In 2020, the company amended this agreement directly with Vista Gold, accelerating final payments to cancel all net smelter royalties and back-in rights, thereby securing a 100% unencumbered interest. Operations are conducted through its single active, wholly-owned subsidiary, Minera Amari, S.A. de C.V. In April 2024, the company streamlined its corporate holdings by dissolving a non-operational subsidiary, ePower Metals, S.A. de C.V. Ownership is concentrated among insiders, with management and directors holding approximately 15% of the common shares. No other material acquisitions, dispositions, or joint ventures were completed during the last fiscal year.