Silicon Metals Corp. Issues First Aggregate Permit Option Shares and Makes Initial Cash Payment

Rhea-AI Summary

Silicon Metals Corp (CSE: SI) has initiated its option agreement to acquire a 100% interest in Aggregate Permit AP6453 in the Sudbury Mining District, Ontario. The company has issued 500,000 common shares at $0.055 per share and made an initial cash payment of $25,000 to Geotek Exploration and Prospecting Ltd.

The remaining option payments include an additional $25,000 cash payment within 15 business days, followed by two separate issuances of 1.5 million common shares at 12 and 18 months after CSE approval. All securities issued will be subject to a four-month statutory hold period.

Positive

• Strategic acquisition opportunity in the world-class Sudbury Mining District
• Structured payment terms spread over 18 months reducing immediate financial burden
• Initial payment terms met with both cash and shares

Negative

• Share dilution through issuance of up to 3.5 million common shares
• Additional cash payment of $25,000 required within 15 business days

News Market Reaction

-3.57%

1 alert

-3.57% News Effect

On the day this news was published, SLCNF declined 3.57%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Vancouver, British Columbia--(Newsfile Corp. - July 21, 2025) - SILICON METALS CORP. (CSE: SI) (FSE: X6U) ("Silicon Metals" or the "Company") announces that, further to its news release dated July 15, 2025, it has issued 500,000 common shares (each, a "Share") to Geotek Exploration and Prospecting Ltd. (the "Optionor") at a deemed price of $0.055 per Share, and made an initial cash payment of $25,000, pursuant to the Company's recently announced option (the "Option") to purchase an undivided 100% right, title and interest in Aggregate Permit AP6453 (the "Permit") located in the world class Sudbury Mining District of Ontario, Canada.

The balance of the payments to be made under the Option are as follows:

• Pay the Optionor $25,000 in cash within fifteen (15) business days from the Effective date of the agreement

• On or before twelve (12) months following the CSE approval date, issue the Optionor 1,500,000 common shares

• On or before eighteen (18) months following the CSE approval date, issue the Optionor 1,500,000 common shares

All securities issued in connection with the Option will be subject to a statutory hold period expiring four months and one day after the date of issuance, as set out in National Instrument 45‐102 – Resale of Securities.

About Silicon Metals Corp.

Silicon Metals Corp. is currently focused on exploration in western Canada, namely British Columbia. The Company holds an undivided 100% right, title and interest in the Ptarmigan Silica Project located approximately 130km from Prince George, British Columbia. The Company has also acquired an option to purchase an undivided 100% right, title, and interest in both the Silica Ridge Silica Project located approximately 70kms southeast from the town of MacKenzie, British Columbia, as well as the Longworth Silica Project located approximately 85km East from Prince George, British Columbia. Silicon has also signed a Definitive Option Agreement to earn a 100% interest in the Sudbury District of Ontario based Aggregate Permit 6453 and signed a Definitive Purchase Agreement to acquire five (5) mining claims encompassing the permit itself.

ON BEHALF OF THE BOARD OF DIRECTORS OF

SILICON METALS CORP.

"Morgan Good"

Morgan Good
Chief Executive Officer and Director

For more information regarding this news release and any other details regarding the Company's future plans, please contact:

Morgan Good, CEO and Director

T: 604-715-4751
E: morgan@siliconmetalscorp.com
W: www.siliconmetalscorp.com

Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE accepts responsibility for the adequacy or accuracy of this release).

Cautionary Note Regarding Forward-Looking Statements

This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, development and plans for the Permit, the issuance of the Shares to the Optionor and regulatory approvals thereof.

Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Readers are cautioned that the foregoing list of factors is not exhaustive.

In making the forward-looking statements in this news release, the Company has applied certain material assumptions, including without limitation, that the Company will be able to execute its plans for the development of the Permit, that the Company will receive regulatory approval for the issuance of Shares to the Optionor, and that the Company will have all the necessary resources, including personnel and capital to carry out its business plans.

These forward‐looking statements involve numerous risks and uncertainties, and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, that the Company may not be able to develop the Permit as anticipated, that the Company may not receive regulatory approval for the issuance of the Shares to the Optionor, that the Company will be unable to carry out its business plans as disclosed; changes in applicable legislation impacting the Company's exploration plans; unanticipated costs; loss of key personnel; failure to raise the capital required to carry out the Company's business plans.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/259529

FAQ

What is the total value of Silicon Metals Corp's (SLCNF) initial payment for the Aggregate Permit option?

Silicon Metals made an initial payment consisting of 500,000 common shares at $0.055 per share (valued at $27,500) plus $25,000 in cash, totaling $52,500.

How many shares will Silicon Metals Corp (SLCNF) issue for the Aggregate Permit option agreement?

Silicon Metals will issue a total of 3.5 million shares: 500,000 shares initially, followed by two issuances of 1.5 million shares each at 12 and 18 months after CSE approval.

What is the location of the Aggregate Permit AP6453 that Silicon Metals Corp is acquiring?

The Aggregate Permit AP6453 is located in the Sudbury Mining District of Ontario, Canada, known as a world-class mining region.

What are the remaining payment terms for Silicon Metals Corp's Aggregate Permit option?

The remaining payments include $25,000 in cash within 15 business days, 1.5 million shares at 12 months, and another 1.5 million shares at 18 months following CSE approval.

How long is the statutory hold period for shares issued under this option agreement?

All securities issued under the option agreement are subject to a statutory hold period of four months and one day after the date of issuance.