REG - Hochschild MiningPLC - Update on Volcan Gold Project

Hochschild MiningAnnouncement

03/09/2025 14:45

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RNS Number : 8879X  Hochschild Mining PLC  03 September 2025

 

 

 

 

 

_____________________________________________________________________________________

 

3 September 2025

 

Update on Volcan Gold Project

 

Hochschild Mining PLC ("Hochschild" or "the Company") (LSE: HOC) (OTCQX:
HCHDF) is pleased to announce that its wholly-owned indirect subsidiary,
Tiernan Gold Corp ("Tiernan"), which is developing the Volcan gold project in
Chile ("the Project"), has signed a Letter of Intent with Railtown Capital
Corp. ("Railtown") (TSXV:RLT.P). The Letter of Intent outlines the general
terms and conditions pursuant to which Railtown and Tiernan expect to effect a
business combination that will result in Railtown acquiring all of the issued
and outstanding securities of Tiernan in exchange for securities of Railtown
and will result in a reverse take-over of Railtown by Tiernan and is expected
to result in Tiernan becoming listed on the TSX Venture Exchange (the
"Transaction" or "RTO").

 

As announced by the Company in August 2023, Hochschild, through Tiernan, has
been evaluating strategic options aimed at maximising the value of Volcan. The
RTO will enable Tiernan to independently secure external financing for the
Project's future development with completion subject to a number of conditions
including completing a fully marketed concurrent equity financing (terms will
be determined in the context of the market), completion of satisfactory due
diligence, and the execution of the definitive agreement and related
transaction documents. There is no assurance that a definitive agreement will
be successfully negotiated or entered into.

 

Under the recently updated Preliminary Economic Assessment completed by
Ausenco in August 2025, Volcan will produce 332,000oz of gold per annum for
the first ten years of mine life (14 years) at an average All-in-Sustaining
Cost of US$1,094/oz. The Project's post-tax NPV@5% is US$1,513 million and has
an IRR of 29% at a gold price of $2,400/oz.

 

Transaction Highlights

§ Railtown to offer a ratio of common shares for each issued and outstanding
common share of Tiernan, resulting in a pro forma ownership split of
approximately 87% for Hochschild and 13% for Railtown shareholders.

§ Transaction targeted to close in November 2025 following Railtown
shareholder and TSX Venture Exchange approvals.

§ Fausto Di Trapani, currently Chief Financial Officer of MAG Silver Corp.,
to be appointed CEO of combined entity.

 

Please see separate Tiernan Gold Corp press release dated 3 September 2025 for
further details.

 

Eduardo Landin, Chief Executive Officer commented:

"The Transaction marks an important step forward for Tiernan Gold and reflects
the significant amount of work completed over the past few years on the Volcan
project. With today's announcement, we are establishing Tiernan as a dedicated
platform to advance Volcan and realise its full potential under experienced
leadership. As part of our broader strategy to evaluate strategic alternatives
for non-core assets, we have chosen this route to unlock value from Volcan
while allowing Hochschild to focus its resources on our high-quality portfolio
in Peru, Brazil, and Argentina. With continued strength in gold prices, we
believe this structure offers the best path to maximise long-term value for
all stakeholders."

_____________________________________________________________________________________

 

Enquiries:

 

Hochschild Mining PLC

Charles Gordon
 
 
                         +44 (0)7739 320982

Head of Investor Relations

 

Hudson Sandler

Charlie Jack
 
 
                             +44 (0)207 796 4133

Public Relations

_____________________________________________________________________________________

 

 

 

 

About Hochschild Mining PLC

Hochschild Mining PLC is a leading precious metals company listed on
the London Stock Exchange (HOCM.L / HOC LN) and crosstrades on the OTCQX
Best Market in the U.S. (HCHDF), with a primary focus on the exploration,
mining, processing and sale of silver and gold. Hochschild has over fifty
years' experience in the mining of precious metal epithermal vein deposits and
operates two underground epithermal vein mines: Inmaculada, located in
southern Peru; and San Jose in southern Argentina, and an open pit gold mine,
Mara Rosa, located in the state of Goiás, Brazil. Hochschild also has the
Monte do Carmo Advanced Project and numerous long-term projects throughout the
Americas.

 

Important notices

 

This announcement is not for release, publication or distribution, in whole or
in part, directly or indirectly in, into or from any jurisdiction where to do
so would constitute a violation of the relevant laws or regulations of such
jurisdiction.

 

This announcement is for information purposes only and is not intended to and
does not constitute, or form part of, an offer to sell or an invitation to
purchase any securities or a solicitation of an offer to buy, otherwise
acquire, subscribe for, sell or otherwise dispose of any securities pursuant
to the Transaction or otherwise, nor shall there be any purchase, sale,
issuance, transfer or exchange of securities or such solicitation pursuant to
the Transaction or otherwise in any jurisdiction in which such offer,
invitation, solicitation, purchase, sale, issuance or exchange is unlawful.

 

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.

 

Forward-looking statements

 

This announcement contains certain forward-looking statements, including such
statements within the meaning of Section 27A of the US Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. In particular, such forward-looking statements may relate to matters
such as the business, strategy, investments, production, major projects and
their contribution to expected production and other plans of Hochschild Mining
PLC and its current goals, assumptions and expectations relating to its future
financial condition, performance and results.

 

Forward-looking statements include, without limitation, statements typically
containing words such as "intends", "expects", "anticipates", "targets",
"plans", "estimates" and words of similar import. By their nature,
forward-looking statements involve risks and uncertainties because they relate
to events and depend on circumstances that will or may occur in the future.
Actual results, performance or achievements of Hochschild Mining PLC or
members of its group may be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements. Factors that could cause or contribute to differences between the
actual results, performance or achievements of Hochschild Mining PLC or
members of its group and current expectations include, but are not limited to,
legislative, fiscal and regulatory developments, competitive conditions,
technological developments, exchange rate fluctuations and general economic
conditions. The Company cautions against undue reliance on any forward-looking
statement or guidance, particularly in light of the current economic climate.
Past performance is no guide to future performance and persons needing advice
should consult an independent financial adviser.

 

The forward-looking statements reflect knowledge and information available at
the date of preparation of this announcement. Except as required by the UK
Listing Rules and applicable law, Hochschild Mining PLC does not undertake any
obligation to update or change any forward-looking statements to reflect
events occurring after the date of this announcement. Nothing in this
announcement should be construed as a profit forecast.

 

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LEI: 549300JK10TVQ3CCJQ89

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