REG - Metals Exploration - La India Development Update

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RNS Number : 7250K  Metals Exploration PLC  09 December 2025

9 December 2025

 

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 a comprehensive update
on development and construction progress at its La India gold project in
Nicaragua ("La India" or the "Project").

 

Development and construction activities at La India continue to advance on
schedule, reflecting the strong project momentum displayed since Metals
Exploration acquired the Project in early 2025. La India continues to benefit
from a strengthened Nicaraguan management team, strong contractor performance,
improved community relations, and rapid mobilisation of the processing plant
and equipment.

 

Highlights:

 

·      Development schedule - The development remains ahead of schedule
at 24% complete at the end of November compared to the 20% forecast, and is
expected to be fully funded from FY2026 Runruno gold mine cash flow.

·      Processing Plant Capacity Upgrade - The processing plant (the
"Plant") throughput capacity design has been upgraded to 1.8 million tonnes
per annum ("mTpa") from 1.4 mTpa, in anticipation of future growth
opportunities.

·      Laboratory setup - The on-site laboratory building is nearing
completion and scheduled to be operative from February 2026.

·      Earthworks and Site Preparation - Bulk earthworks for the
processing plant and technical services area are complete. Pre-stripping of
the open pit mining area is on schedule, at approximately 17% complete.

·      ROM pad - The run-of-mine ("ROM") pad is complete and the first
ore has commenced stockpiling.

·      Site Infrastructure - Construction of key non-process
infrastructure is progressing ahead of schedule; with several camp
accommodation buildings completed and operational.

·      Community Relations - Agreement was reached with artisanal miners
to acquire land rights from the local artisanal Cooperativa. All artisanal
miners have left the La India open pit area.

·      Safety & Health - No lost time injuries since construction
commenced.

Darren Bowden, CEO of Metals Exploration, commented:

 

"We are extremely pleased with the continued momentum at La India, where
development and construction activities are progressing on or ahead of
schedule. Major earthworks have been completed, key infrastructure is taking
shape, and concrete foundations are well advanced in the crushing, grinding
and CIL tank areas. We have already begun stockpiling early ore feed on the
ROM pad. Our exploration programme is also progressing well, with drilling
expanding into priority areas such as Cacao, and surface works at Phase 1
North identifying immediate opportunities to grow the resource base in the
open pit.

 

"These achievements give us increasing confidence in delivering first gold
during Q4 2026. La India is advancing safely and quickly, underpinned by a
strengthened local management team, improved community partnerships, and the
dedication of our workforce and contractors. We remain excited by the
long-term potential of the Project and look forward to providing further
updates as work progresses."

 

Development and Construction Progress

 

Construction and development activities are proceeding smoothly across all
disciplines. Total development remains ahead of schedule at 24% complete at
the end of November compared to 20% forecast. Total CAPEX expenditure for
FY2025 is forecast to be approximately US$70 million, with the balance of the
CAPEX spend fully funded from the expected FY2026 forecast Runruno gold mine
cash flow. The below table shows actual performance against the construction
schedule, and key construction milestones are also shown.

Table 1: La India Development Schedule and Milestones

 

Processing Plant

 

The Rock Creek plant, including crushers, conveyors, ball mill, Sepro Falcon
gravity circuit, smelting equipment, and laboratory, acquired in March 2025,
arrived on site in August 2025. Key containers have been unpacked and the
major components are being prepared for installation. For operational
efficiencies, new motors and gear drives have been acquired for the grinding
circuit so each mill (one SAG and one Ball) will run on the same equipment.

 

Given the numerous opportunities to expand operations in and around La India,
the Plant throughput capacity design has been increased from 1.4 mTpa to 1.8
mTpa. This increased capacity necessitated the acquisition of a new elution
circuit and gold room, rather than using the items that were acquired as part
of the Rock Creek Plant package. This increase in design capacity has moved
the total CAPEX forecast marginally from US$160 million to US$165 million. The
development remains within this revised CAPEX budget and is expected to remain
fully funded from FY2026 free cash flow from the Runruno Philippine gold mine.

 

Plant construction is ahead of schedule with Plant foundations 30% complete
with works currently underway at the crushing, grinding and carbon-in-leach
("CIL") tanks areas. The CIL tanks are expected to arrive on site in Q1 2026.

 

Power connection to the site from the main grid has been agreed with the
necessary authorities. As the only main remaining long-lead item, the
Company's transformer, required to receive and distribute the main grid power
to the Plant, has been ordered and is expected to arrive on site in Q3 2026.
The local power generation company, Enatrel, will install the approximate 200
metre spur line from the main grid to the Company's transformer. The Company
expects the Plant to be energised on schedule during H2 2026; with
commissioning activities commencing in October 2026.

 

All material equipment items and tenders have been ordered and awarded, with
the exception of the electrical contractor.

 

Site Laboratory

 

The on-site laboratory building is nearing completion and is scheduled to be
operative from February 2026, with Interteck having been selected as the
preferred supplier to manage the on-site laboratory. Being able to assay drill
core locally will significantly speed up the time taken to receive assay
results from the Company's drilling activities. Currently, drill samples need
to be exported to Canada, resulting in an approximate 8-week turnaround to
receive drill assay results.

 

The Company expects to issue a comprehensive exploration update in February
2026.

 

Earthworks and Site Preparation

 

Significant progress has been made on mine development earthworks associated
with the site and industrial area.

 

·      Bulk earthworks for the processing plant and technical services
area are complete, and site access to the tailings storage facility ("TSF") is
approximately 90% complete.

·      ROM pad earthworks are completed.

·      Magazine platform and access earthworks are completed.

·      Across the broader development zone, pre-stripping earthworks in
the northern phase of the La India open pit (where mining will commence) is
17% complete. Mapping and channel sampling conducted in this area is adding to
our resource understanding. Refer to the RNS dated 28 November 2025
(https://irtools.co.uk/42/story/cfd804c1-a7cb-4522-9a97-a1046ecda8dd)
regarding an extension to the initial pit.

 

ROM Pad

 

The construction of the ROM pad is complete and the first ore has been
stockpiled. This ore came from a previously unknown vein discovered during
road access works. There are approximately 2,045 tonnes of ore averaging 1.14
grammes per tonne gold currently on the ROM pad. The construction schedule is
forecasting that approximately 500,000 tonnes of ore will be delivered to the
ROM in advance of commissioning activities.

 

Site Buildings and Infrastructure

 

Construction of non-processing site infrastructure is advancing rapidly,
supported by the agreed relocation of artisanal miners from the Project site
and pit area, as announced on 8 August 2025
(https://irtools.co.uk/42/story/3092c6e9-1231-47ac-a601-36ef70068e8e) .

 

·      Construction of various key operational buildings, including
maintenance workshops, a laboratory, offices, camp accommodation, and the fuel
storage facility, are all progressing ahead of schedule, with a number of
these fully functional and operational.

·      Roads and access routes within the project area are being
developed and upgraded.

 

Tailings Storage Facility

 

The Company has acquired all the land it requires for the TSF and has
submitted its TSF designs to the government for final permits. A new access
road to the TSF, which does not pass through local settlements, is 90%
complete.

 

TSF design is 80% complete and the tender to construct stage 1 of TSF dam has
been issued. The Company expects final government permits for the TSF design
imminently.

 

Community Relations and Artisanal Miner Agreements

 

The Company continues to receive strong support from local communities in
Nicaragua.

 

·      Following negotiations with the artisanal miners who had been
occupying large portions of the mining area, the Company reached a fair and
constructive agreement to acquire occupation rights from the local
Cooperativa. All mining areas within the proposed La India open pit are now
free of artisanal miners, and negotiations continue regarding other tenement
areas that are occupied.

·      The Company continues to prioritise positive community relations
by engaging in numerous social programmes. These include a fresh drinking
water initiative, funding the construction of a new fire station, alliances
with the Municipal Ministry of Health and White Cross, the Happy Childhood
Programme, and the provision of healthcare for older adults in the community.
These programmes aim to benefit the wellbeing and livelihoods of the
communities in which we operate, continuing the Company's commitment to
sharing the benefits of our mining activities with those communities closely
associated with the operations.

 

Figure 1: Overall Site Development

 

Figure 2: Concrete pour mill footing and raft beam

 

Figure 3: Construction of site buildings and infrastructure

 

Figure 4: ROM crusher footings and wing wall

Figure 5: Concrete works at the Reclaim tunnel

 

Figure 6: Concrete works at the Grinding & CIL areas

 

END

 

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
(http://www.metalsexploration.com)

X:                            @MTLexploration
(https://twitter.com/MTLexploration)

LinkedIn:               Metals Exploration
(https://www.linkedin.com/company/metals-exploration-plc)

 

Forward Looking Statements

Certain statements relating to the estimated or expected future production,
operating results, cash flows and costs and financial condition of Metals
Explorations, planned work at the Company's projects and the expected results
of such work contained herein are forward-looking statementswhich are based on
current expectations, estimates and projections about the potential returns of
the Group, industry and markets in which the Group operates in, the Directors'
beliefs and assumptions made by the Directors. Forward-looking statements are
statements that are not historical facts and are generally, but not always,
identified by words such as the following: "expects", "plans", "anticipates",
"forecasts", "believes", "intends", "estimates", "projects", "assumes",
"potential" or variations of such words and similar expressions.
Forward-looking statements also include reference to events or conditions that
will, would, may, could or should occur. Information concerning exploration
results and mineral reserve and resource estimates may also be deemed to be
forward-looking statements, as it constitutes a prediction of what might be
found to be present when and if a project is actually developed.

 

These statements are not guarantees of future performance or the ability to
identify and consummate investments and involve certain risks, uncertainties
and assumptions that are difficult to predict, qualify or quantify. Among the
factors that could cause actual results or projections to differ materially
include, without limitation: uncertainties related to raising sufficient
financing to fund the planned work in a timely manner and on acceptable terms;
changes in planned work resulting from logistical, technical or other factors;
the possibility that results of work will not fulfil projections/expectations
and realize the perceived potential of the Company's projects; uncertainties
involved in the interpretation of drilling results and other tests and the
estimation of gold reserves and resources; risk of accidents, equipment
breakdowns and labour disputes or other unanticipated difficulties or
interruptions; the possibility of environmental issues at the Company's
projects; the possibility of cost overruns or unanticipated expenses in work
programs; the need to obtain permits and comply with environmental laws and
regulations and other government requirements; fluctuations in the price of
gold and other risks and uncertainties.

 

The Company expressly disclaims any obligation or undertaking to disseminate
any updates or revisions to any forward looking statements contained herein to
reflect any change in the Group's expectations with regard thereto or any
change in events, conditions or circumstances on which any such statements are
based unless required to do so by applicable law or the AIM Rules.

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