Peruvian Metals Provides Update on Tailings Expansion and Upgrades at the Aguila Norte Processing Plant and Announces Grant of Stock Options
Rhea-AI Summary
Peruvian Metals (OTC: DUVNF) expanded the tailings facility at its 80%-owned Aguila Norte plant in northern Peru, extending tailings life by at least two years, funded from processing cash flow. April production ran at full capacity, processing 3,007 tonnes, for 12,220 tonnes year to date.
The company is performing upgrades and maintenance on the crushing circuit and ball mill, not expected to hinder production, and plans to connect the plant to the national power grid to lower processing costs. It also intends to expand capacity to 350 tonnes per day and add a circuit targeting Au-Ag-Cu concentrates. Peruvian Metals granted 3.3 million stock options exercisable at $0.35 until May 12, 2031, subject to regulatory approval.
AI-generated analysis. Not financial advice.
Positive
- Tailings expansion extends facility life by at least two years
- April production at full capacity with 3,007 tonnes processed
- Year-to-date throughput of 12,220 tonnes at Aguila Norte
- Tailings expansion funded from current processing cash flow
- Planned grid connection expected to lower processing costs
- Planned plant expansion to 350 tonnes per day capacity
Negative
- Grant of 3.3 million stock options at $0.35 may dilute shareholders
Edmonton, Alberta--(Newsfile Corp. - May 12, 2026) - Peruvian Metals Corp - (TSXV: PER) (OTC Pink: DUVNF) ("Peruvian Metals" or the "Company") is pleased to announce upgrades and tailings expansion at its 80-per-cent-owned Aguila Norte processing plant ("Aguila Norte" or the "Plant") located in Northern Peru.
During the months of March and April, Peruvian Metals completed the expansion of the tailings facility which expects to extend the tailing facility life for at least another two years. The expansion was achieved through the current cash flow generated from the processing revenue of third-party mineral. The Company is currently performing further upgrades and routine maintenance on the crushing circuit and ball mill. The Company does not expect that these upgrades or maintenance will hinder production. The Plant's production for the month of April was at full capacity, processing 3,007 tonnes for a year to date total of 12,220 tonnes.
The Company is also planning to connect the Plant to the national power grid. The Company is currently reviewing the best route for a powerline and is in talks with several possible contractors to provide costs and timing. Connection to the power grid will lower the processing costs. The Company is also planning to expand the plant to the maximum processing tonnage of 350 tonnes per day. The Company will first design a process flow diagram for a new circuit focusing on producing Au-Ag-Cu concentrates. Once completed, the Company will accept bids and proposals from third parties to complete the expansion.
Jeffrey Reeder, Chief Executive Officer of Peruvian Metals, comments: "The Company's Aguila Norte processing facility has been operating successfully and achieving positive cash flow for several years. With the recent financing, the Company is in a better situation to reinvest and improve the Plant infrastructure without any significant financing. We will continue to expand the tailings area over the long-term, ensuring that the Plant can operate at peak capacity for the foreseeable future. The Plant has not had any significant issues over the past 8 years. The routine maintenance being performed at this time will be completed over the next several months."
Peruvian Metals has granted incentive stock options to various directors, officers and consultants to purchase up to 3.3 million common shares of the Company on or before May 12th, 2031, at an exercise price of
Qualified Person
Jeffrey Reeder, P. Geo., is the Qualified Person, as defined in National Instrument 43-101, who has reviewed and approved the technical contents of this release.
About Peruvian Metals Corp.
Peruvian Metals Corp. is a Canadian exploration and mineral processing company. Our business model is to provide clients with toll milling services and produce high-grade marketable concentrates from
ON BEHALF OF PERUVIAN METALS
CORP.
(Signed) Jeffrey Reeder
For additional information, contact:
Jeffrey Reeder, C.E.O.
Telephone: (647) 302-3290
Email: jeffrey.reeder@peruvianmetals.com
Neither the 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.
Disclosure Regarding Forward-Looking Statements: This press release contains certain "Forward-Looking Statements" within the meaning of applicable securities legislation. We use words such as "might", "will", "should", "anticipate", "plan", "expect", "believe", "estimate", "forecast" and similar terminology to identify forward looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions, and analysis made by management in light of its experience, current conditions and its expectations of future developments as well as other factors which it believes to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in the forward-looking statements and information and accordingly, readers should not place undue reliance on such statements and information. Risks and uncertainties are more fully described in our annual and quarterly Management's Discussion and Analysis and in other filings made by us with Canadian securities regulatory authorities and available at www.sedarplus.ca. While the Company believes that the expectations expressed by such forward-looking statements and forward-looking information and the assumptions, estimates, opinions, and analysis underlying such expectations are reasonable, there can be no assurance that they will prove to be correct. In evaluating forward-looking statements and information, readers should carefully consider the various factors which could cause actual results or events to differ materially from those expressed or implied in the forward-looking statements and forward-looking information.
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