Vancouver, British Columbia--(Newsfile Corp. - August 5, 2026) - BRS RESOURCES LTD. (CSE: BRS) (the "Company" or "BRS") is pleased to announce that, further to its previous letter of intent, it has signed a definitive agreement (the "Definitive Agreement") to acquire high-potential mineral concessions in the premier Mulatos Gold Belt, located 11 km north of Yécora, Sonora, Mexico (the "Properties").
This strategic transaction is intended to expand the Company's exploration footprint to over 1,000 hectares targeting high-grade epithermal precious metal deposits (gold, silver, and copper) situated along the same prolific corridor as major operating mines including Alamos Gold's Mulatos mine and Agnico Eagle's La India mine.
Operating Structure & Local Execution
As the local operating entity in Sonora, Mexico, Canson Mining Group SA de CV would directly oversee:
Workforce & Hiring: Managing local labor and field site operations.
Permitting & Environment: Handling regulatory filings, surface rights, and environmental compliance.
Community Relations: Building direct partnerships with local Mexican stakeholders.
Logistics & Tax Compliance: Directing regional supply chains, land taxes, and corporate compliance.
Transaction & Key Highlights
Tier-1 Jurisdiction: The concessions-including the La Guadalupana and El Señor de los Guerreros claim blocks-cover 1,053 hectares of prime epithermal gold-silver-copper potential.
Definitive Agreement Terms: Pursuant to the Definitive Agreement, BRS may earn a 75% interest in the Properties by expending US$5,000,000 in exploration and development over a 5 year period and, at its sole discretion, making a payment of US$5,000,000 at the end of the 5 year period. BRS has agreed to grant the vendors a 3% net smelter return royalty (the "NSR") with the option to buy-back 2% of the NSR for US$3,000,000. BRS has agreed to pay US$100,000 which will be used by the vendors for the preparation of a NI 43-101 technical report. As part of the acquisition, the vendors have agreed to grant to BRS a right of first refusal in connection with the sale of any of their interest in the Properties. Completion of the acquisition is subject to BRS obtaining all necessary regulatory approvals.
Technical Advancement: BRS intends on engaging technical consultants (ALS Geo Resources) to oversee site visits and data integration to advance a NI 43-101 compliant technical report.
Active Field Program: BRS intends on advancing high-resolution drone geophysics (UAV magnetics with GDI Geofísica Aplicada de México) and 3D inversion modeling to finalize primary targets ahead of its drilling campaign.
"Signing this definitive agreement and establishing our formal operational structure through Canson Mining Group SA de CV represents a pivotal milestone for BRS Resources. By pairing our disciplined exploration strategy with robust local operational capability in Sonora, we are fully equipped to execute our upcoming drill programs and unlock significant value for our shareholders."
- Byron Coulthard, President and CEO of BRS Resources Ltd.
BRS RESOURCES LTD.
BRS Resources Ltd. is a mineral exploration company focused on the identification, evaluation, and acquisition of mineral exploration properties using sustainable and innovative practices. BRS prioritizes building trust within the communities where it operates and creating lasting value for its stakeholders through responsible resource development.
BRS' principal property is the Cowtrail Property, which is currently in the exploration stage. The Cowtrail Property consists of 32 minerals claims covering 4,400 hectares located in south central British Columbia, Canada.
| ON BEHALF OF THE BOARD | INVESTOR RELATIONS CONTACT |
| Byron Coulthard President and CEO Phone: 604.657.7004 Email: byron@brsresourcesca.com | Jason R. Hylton-Foster Vice President, Investor Relations Phone: 604-212-2005 Email: Jason@brsresourcesca.com |
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian legislation. All statements in this news release that are not purely historical are forward-looking statements and include statements regarding beliefs, plans, expectations and orientations regarding the future including, without limitation, that the properties will unlock significant value for its shareholders, that BRS will obtain all necessary regularoty approvals and that BRS will proceed with the exploration and development of the properties as planned. Although the Company believes that such statements are reasonable and reflect expectations of future developments and other factors which management believes to be reasonable and relevant, the Company can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: "believes", "expects", "anticipates", "intends", "estimates", "plans", "may", "should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, market fundamentals will continue to support the viability of mineral exploration, the receipt of any necessary permits, licenses and regulatory approvals in connection with the acquisition and the exploration and future development of the properties, the availability of the financing required for the Company to carry out its planned future activities, and the ability of the Company to operate in Mexico considering the unstable mining climate. The forward-looking statements reflect management's current expectations based on information currently available and are subject to a number of risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking statements including: that BRS and the vendors will be able to successfully negotiate and execute a definitive agreement for acquisition of the properties, that BRS may not receive any necessary permits, licenses and regulatory approvals in connection with the acquisition and the exploration and future development of the properties, that Company may not complete the exploration program on the properties as proposed; that the Company may not be able to make the payments or incur the expenditures on the properties; adverse market conditions; and other factors beyond the control of the parties. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be put on such statements due to their inherent uncertainty. Factors that could cause actual results or events to differ materially from current expectations include general market conditions and other factors beyond the control of the Company. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
Neither the CSE nor the Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/308048
Source: BRS Resources Ltd.
