Bear Creek Mining Monetizes Tassa Project in Peru

Rhea-AI Summary

Bear Creek Mining (OTCQX: BCEKF) executed an agreement dated December 10, 2025 to sell its 100% interest in the non-core Tassa Project in southern Peru for total consideration of US$3.5 million payable in staged payments over 30 months.

Consideration breakdown: US$30,000 signing fee (paid), US$470,000 on execution (paid), US$500,000 within 6 months, US$1,000,000 within 18 months, and US$1,500,000 within 30 months. Deferred payments are secured by a first-ranking security interest on the Tassa concessions.

Upon completion, Bear Creek retains a 2% net smelter return royalty on Tassa, with Colque able to buy back 1% of the royalty for US$2.5 million. A US$70,000 commission (2% of consideration) was paid to BLB Advisory EIRL.

Positive

• Total cash consideration of US$3.5M over 30 months
• Immediate cash received: US$500,000 (US$30,000 signing + US$470,000 execution)
• Deferred payments secured by a first-ranking security interest
• Retains a 2% net smelter return royalty with a US$2.5M buyback option for 1%

Negative

• Sold 100% interest in Tassa, eliminating future direct upside from the asset
• Paid a US$70,000 advisory commission (2% of consideration)

Vancouver, British Columbia--(Newsfile Corp. - December 11, 2025) - Bear Creek Mining Corporation (TSXV: BCM) (OTCQX: BCEKF) (BVL: BCM) ("Bear Creek" or the "Company") announces that it has executed an agreement dated December 10, 2025 (the "Agreement") to sell its 100% interest in the non-core Tassa Project ("Tassa") in southern Peru to Colque Holding Pty Ltd ("Colque"), a private Australian company for total consideration ("Consideration") of US$3.5 million to be made in staged payments over a 30 month period as outlined below.

The Consideration comprises:

1. US$30,000 signing fee (paid);
2. US$470,000 upon execution of the Agreement (the "Execution Date") (paid);
3. US$500,000 on or before 6 months following the Execution Date (the First Deferred Payment);
4. US$1,000,000 on or before 18 months following the Execution Date (the Second Deferred Payment); and
5. US$1,500,000 on or before 30 months following the Execution Date (the Third Deferred Payment and together with the First Deferred Payment and the Second Deferred Payment, collectively, the Deferred Consideration).

The Deferred Consideration payments are secured in favour of the Company by a first-ranking security interest over the Tassa concessions.

Upon completion of all Deferred Consideration and settlement of Colque's acquisition of Tassa, Colque (or its successors) will grant the Company a 2% net smelter return royalty in respect of all minerals produced from Tassa, of which Colque may buy back 1% through the payment of an additional US$2.5 million.

Eric Caba, President and CEO of the Company, comments, "This transaction underscores Bear Creek's commitment to focus its capital and management resources on its core assets while unlocking value from non-core projects. We are very pleased to have secured both near-term and potential long-term value from the Tassa Project and we look forward to following Colque's activities at the property."

A commission fee of US$70,000 (representing 2% of the total Consideration amount) was paid to BLB Advisory EIRL in compensation for strategic advisory services leading to the successful sale of the Tassa Project. BLB Advisory EIRL is arms-length to the Company.

On behalf of the Board of Directors,

Eric Caba
President and Chief Executive Officer

For further information, contact:
Barbara Henderson - VP Corporate Communications
Direct: 604-628-1111
E-mail: barb@bearcreekmining.com
www.bearcreekmining.com

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Cautionary Statement Regarding Forward-Looking Information
This news release contains forward-looking statements regarding: payment of the Deferred Consideration and recourse if such payments are not made; settlement of Colque's acquisition of Tassa; Colque's granting to the Company of a net smelter royalty; and, Colque's future activities at the Tassa property. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, but not limited to the assumption that the terms of the Agreement will be satisfied in their entirety. Although management considers the assumptions underlying the forward-looking statements to be reasonable based on information available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and the risk exists that estimates, forecasts, projections, and other forward-looking statements will not be achieved or that assumptions on which they are based do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the expectations expressed in them. These risk factors may be generally stated as the risk that the assumptions expressed above do not occur, but may include additional risks as described in the Company's latest Annual Information Form, and other disclosure documents filed by the Company on SEDAR+. The foregoing list of factors that may affect future results is not exhaustive. Investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on behalf of the Company, except as required by law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) 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/277805

FAQ

What did Bear Creek announce about the Tassa Project on December 10, 2025 (BCEKF)?

Bear Creek agreed to sell its 100% interest in Tassa for US$3.5M payable in staged payments over 30 months.

How much cash has Bear Creek received so far from the Tassa sale (BCEKF)?

Bear Creek received a US$30,000 signing fee and US$470,000 on execution, totalling US$500,000.

Are the deferred Tassa payments secured in the Bear Creek sale (BCEKF)?

Yes; the Deferred Consideration is secured by a first-ranking security interest over the Tassa concessions.

What royalty did Bear Creek retain for Tassa and can it be bought back (BCEKF)?

Bear Creek retains a 2% net smelter return royalty; Colque may buy back 1% for US$2.5M.

When are the remaining Tassa payments due under the agreement (BCEKF)?

Remaining payments: US$500,000 ≤6 months, US$1,000,000 ≤18 months, US$1,500,000 ≤30 months from execution.

Was an advisory fee paid in connection with the Tassa sale (BCEKF)?

Yes; a US$70,000 commission (2% of total consideration) was paid to BLB Advisory EIRL.