Vancouver, British Columbia — August 5, 2026 — BRS Resources Ltd. (CSE: 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
The acquisition establishes Canson Mining Group SA de CV as the Mexican corporate operational arm. 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
- BRS may earn a 75% interest in the Properties by expending US$5,000,000 in exploration and development over a five-year period.
- At its sole discretion, BRS may make a payment of US$5,000,000 at the end of the five-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, to be used by the vendors for the preparation of a NI 43-101 technical report.
- The vendors have agreed to grant 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.
Management Commentary
"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.
About 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 mineral claims covering 4,400 hectares located in south central British Columbia, Canada.
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 regulatory 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.
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. 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.