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RNS Number : 5376Y  Metals Exploration PLC  30 March 2026

 

Metals Exploration Plc

3(rd) Floor,

22a St James Square, London, SW1Y 4JH

 

Email: info@metalsexploration.com (mailto:info@metalsexploration.com)

 

30 March 2026

METALS EXPLORATION PLC

 

La India Development Update

 

Metals Exploration plc (AIM: MTL) ("Metals Exploration", the "Company" or the
"Group"), a gold production, development and exploration company with assets
in the Philippines and Nicaragua, is pleased to provide an update on
development and construction progress at its La India gold project in
Nicaragua ("La India" or the "Project") since the last update on 9 December
2025.

 

Construction and development activities at La India continue to advance ahead
of schedule, with overall Project progress standing at 40% complete against a
planned 35% at mid-March 2026. The total Project budget has been revised to
US$171 million and will continue to be funded by free cash flow from the
Company's Runruno gold mine in the Philippines, supported by an undrawn US$30
million gold pre-pay facility. First gold production at La India remains on
track for December 2026.

 

The Company's recently released construction progress video for La India
remains available to view at:
https://metalsexploration.com/progress-at-la-india-2/
(https://metalsexploration.com/progress-at-la-india-2/)

 

 

HIGHLIGHTS:

 

·    Overall Construction Progress - Project construction is 40% complete
at the mid-point of March 2026 against a planned 35%.

·    CAPEX - Total Project expenditure to the end of February 2026 of
approximately US$80 million is tracking in line with forecast against a
planned US$78 million. Total Project budget has increased from US$165 million
to US$171 million due to revised electrical infrastructure costs as detailed
below. Mining fleet expenditure currently stands at US$15 million, with total
fleet costs projected to reach US$29 million. The Company is actively pursuing
an equipment loan of US$20 million, to be secured against the fleet.

·    Processing Plant - Construction of the processing plant currently
tracking at 13% complete, as planned. Plant foundations are 65% complete, with
key concrete footing pours complete or near completion across the crushing,
grinding, carbon-in-leach ("CIL") tank and thickener areas. The reclaim tunnel
structure is complete. Local contractor Duroblock S.A ("Duroblock") has been
awarded the structural, mechanical, piping and electrical installation
("SMPEI") contract alongside Degbed Company Limited ("Degbed") as the
specialist mill installation contractor.

·    Electrical Infrastructure - The Company has agreed a collaborative
arrangement with ENATREL, Nicaragua's national electricity transmission
company, to construct the 138 kilovolt ("kV") substation at a total cost of
US$6.2 million, representing a saving of US$6.2 million against ENATREL's
turnkey proposal of US$12.4 million. Under the agreed structure, ENATREL will
be responsible for engineering, design, equipment supply and commissioning of
the 138kV substation and transmission line, with the Company undertaking civil
works and electromechanical assembly. The total revised electrical
infrastructure budget, inclusive of the La India 34.5kV substation (US$1.6
million) and processing plant switch-rooms (US$4.0 million), is US$11.8
million, an increase of US$5.6 million against the original budget,
contributing to the revised total Project CAPEX of US$171 million.

·    Engineering - Overall engineering is 85% complete, with detailed
civil and process designs being progressively issued for construction.
Deliverables are now focused on structural, mechanical, piping and electrical
installation packages.

·    Earthworks and Pre-stripping - Bulk earthworks for the processing
plant and run of mine ("ROM") pad areas are 100% complete. Open pit
pre-stripping has advanced to approximately 38% complete overall, with pit
deforestation fully complete.

·    ROM Pad - Approximately 94,800 tonnes of low-grade commissioning ore
is now stockpiled on the ROM pad, and this is continuing to build ahead of
commissioning. Mine pre-stripping of waste stands at 728,000 tonnes from the
two main starter pits of 2026: La India Phase 1 North and La India Phase 1
West.

·    Site Infrastructure - Non-process infrastructure is 77% complete,
with multiple camp accommodation and administrative buildings now operational.
The on-site laboratory building is complete, with Interteck Group plc
("Interteck") appointed to manage laboratory operations.

·    Tailings Storage Facility ("TSF") - TSF construction has commenced
following contract award to Duroblock, with access road and earthworks
activities ongoing.

·    Safety & Health - No lost time injuries since construction
commenced. The Project recently achieved over 1.2 million hours worked without
a lost time injury.

 

 

Darren Bowden, CEO of Metals Exploration, commented:

"We are pleased to report continued momentum at La India, where the Project is
tracking ahead of schedule at 40% complete against a planned 35% at mid-March
2026. The team has delivered another quarter of excellent progress, with major
civil foundations complete or near completion across the crushing, grinding,
CIL and thickener areas. Following the continued strong performance of
preferred local contractor Duroblock, the Company has awarded it the SMPEI
contract, alongside specialist mill installation contractor Degbed. With over
90,000 tonnes of commissioning ore already stockpiled on the ROM pad and
expenditure tracking in line with budget, we are in a strong position as we
move into the most intensive phase of construction.

 

"We are particularly pleased to have reached an agreement with ENATREL that
delivers the 138kV substation at a fraction of their original proposal, with a
collaborative model that saves the Project US$6.2 million against the US$12.4
million turnkey cost. This is a strong outcome for the Company and reflects
the constructive working relationship we have developed with the Nicaraguan
authorities.

 

"The achievement of over one million hours worked without a lost time injury
is a milestone the whole team is proud of, and it reflects the Group-wide
safety culture we are fostering at La India. We remain confident in delivering
first gold by December 2026 and look forward to providing further updates as
construction accelerates."

 

 

 

 

Development and Construction Progress

Overall Project construction stands at 40% complete as at mid-March 2026,
ahead of the planned 35%. Total Project expenditure to the end of February is
approximately US$80 million, in line with forecasts against a planned US$78
million. Total Project budget has increased from US$165 million to US$171
million due to revised electrical infrastructure costs as detailed below. The
full balance of CAPEX remains expected to be funded from the FY2026 free cash
flow generated by the Company's Runruno gold mine in the Philippines. To
ensure the pace of development is not affected by the timing of cash flows
generated from Runruno, the Company has arranged an unsecured US$30 million
gold pre-pay facility. This facility is currently undrawn. In addition, the
Company is seeking a US$20 million equipment loan to be secured against the
Company's new mining fleet, of which of US$15 million has been procured out of
a total US$29 million.

 

Processing Plant

Civil foundations are 65% complete, with concrete, rebar and formwork
activities progressing simultaneously across multiple plant areas. The primary
crusher has been installed, the CV02 conveyor is under construction, and the
reclaim tunnel structure is complete. In the grinding area, the SAG Mill
foundations are now complete, and the Ball Mill foundations are expected to
reach completion imminently, with all pending embedded steel inserts received
and installed. The CIL tank foundations are advancing with pedestal works
in-progress, the delivery of the CIL tanks for installation is expected in Q2
2026.

 

The award of the SMPEI installation contract to Duroblock, supported by Degbed
for specialised mill installation, marks a significant step in the Project's
progression toward the mechanical, piping, and electrical installation phase.

 

Engineering is 85% complete, with piping isometrics and electrical
installation packages the primary remaining deliverables. The elution plant is
scheduled to arrive on-site in Q3 2026, with an estimated two-month
installation period, and remains on the Project's critical path to completion.

 

 

Electrical Infrastructure

The total revised electrical infrastructure budget is US$11.8 million, an
increase of US$5.6 million against the original budget, comprising the ENATREL
138kV substation (US$6.2 million), the La India 34.5kV substation (US$1.6
million) and the process plant switch-rooms (US$4.0 million). Installation of
the electrical infrastructure and plant energisation is expected to be
completed by commencement of commissioning activities in Q4 2026, however, it
remains on the Company's critical path.

 

Following negotiations with ENATREL, the Company has agreed a collaborative
construction model for the 138kV substation at a total cost of US$6.2 million,
representing a saving of US$6.2 million against ENATREL's original turnkey
proposal of US$12.4 million. Under the arrangement, ENATREL will be
responsible for engineering, design, equipment supply and commissioning of the
138kV substation and transmission line, whilst the Company will undertake
civil works and electromechanical assembly.    This revised structure
de-risks the delivery of the facility providing more surety around the
critical path.

 

The La India 34.5kV substation connects to the ENATREL 138kV substation and
serves as the primary interface between ENATREL and the processing plant,
underground mining and site infrastructure, and incorporating 3 megawatts (MW)
of back-up power generation.

 

The processing plant switch-rooms budget has increased from US$1.1 million to
US$4.0 million. The original budget assumed re-use of motor control centres
("MCCs") from the Company's Rock Creek processing plant purchased from Alaska,
due to changes in the overall strategy reticulating power at 6.6kV rather than
450V the MCC's were subsequently assessed as unsuitable for La India's
integrated power requirements.

 

Earthworks and Pre-stripping

Bulk earthworks for the processing plant and ROM pad areas are fully complete.
Pre-stripping of the La India starter pits Phase 1 North and Phase 1 West have
advanced to approximately 38%. The mine haul road is complete, and the west
dump access road is also complete.

 

ROM Pad

Approximately 94,800 tonnes of low-grade commissioning ore is now stockpiled
on the ROM pad, representing continued progress toward the 500,000 tonnes ROM
stockpile targeted ahead of commissioning. Ore continues to be sourced from
pre-stripping and pit development activities.

 

Site Infrastructure

Non-process infrastructure is 77% complete overall. Multiple camp and
administration buildings are now operational, with the most advanced units
approaching formal handover. The water and waste treatment plant, constructed
by Aquatec S.A ("Aquatec"), is 90% complete and nearing handover following
successful hydrotesting. The on-site laboratory building is complete and
Interteck has been appointed to manage on-site assaying, which will
significantly reduce sample turnaround times from the current approximately
eight weeks required for export to Canada. The on-site lab will start assaying
samples in Q2 2026. The magazine building is 95% complete. Industrial
buildings, the mine office and security infrastructure are all progressing
well.

 

TSF

Construction for the new life of mine TSF has commenced following the award of
the construction contract to Duroblock. TSF engineering design is 70%
complete, with structural and civil packages being progressively issued. All
relevant land has now been purchased.

 

Health & Safety

The Company is pleased to report no lost time injuries since construction
commenced. During the period, the Project achieved the milestone of 1.2
million hours worked without a lost time injury, reflecting the strong safety
culture being embedded across all work fronts. Rigorous safety management
procedures, including daily pre-shift briefings, job hazard analyses and
field-level risk assessments, continue to be applied across all contractor and
direct work activities.

 

 

 

 

 

For further information, please contact or visit:

 Metals Exploration PLC
 Via BlytheRay                                +44 (0) 207 138 3204

 Nominated & Financial Adviser:               STRAND HANSON LIMITED
 James Spinney, James Dance, Rob Patrick      +44 (0) 207 409 3494

 Joint Broker:                                HANNAM & PARTNERS
 Matt Hasson, Franck Nganou                   +44 (0) 207 907 8500

 Joint Broker:                                PANMURE LIBERUM
 Amrit Mahbubani, Scott Mathieson, Zak Wadud  +44 (0) 20 3100 2000

 Public Relations:                            BLYTHERAY
 Megan Ray, Said Izagaren                     +44 (0) 207 138 3204

                                              metalsexploration@blytheray.com

 Web:                                         www.metalsexploration.com
 X:                                           @MTLexploration (https://twitter.com/MTLexploration)
 LinkedIn:                                    Metals Exploration (https://www.linkedin.com/company/metals-exploration-plc)

 

 

 

Registered Office: 27-28 Eastcastle Street, London, W1W
8DH
Registered Number: 05098945

 

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