Prismo Metals moves its Hot Breccia copper project a significant step closer to the drilling phase with a strategic transaction with Blade Resources, securing equity, cash, and further upside potential.
Prismo Metals Transfers Hot Breccia to Blade Resources
Prismo Metals Inc. (CSE: PRIZ; OTCQB: PMOMF) has signed a definitive assignment agreement with private exploration company Blade Resources Inc. for the Hot Breccia copper project, located in the heart of the Arizona Copper Belt. Under the transaction, all rights, interests, and obligations for the project will be transferred to Blade, with closing expected around March 2, 2026. Hot Breccia is situated in a region that hosts several significant porphyry copper deposits, including operations by Freeport McMoRan, BHP, and Rio Tinto/BHP.
In return, Prismo will receive 6,755,000 common shares of Blade and a cash payment of US$185,000. Upon completion of the transaction, Prismo will hold approximately 24% of Blade’s outstanding shares, making it the largest single shareholder of the copper explorer.
CEO: “Best Option for Hot Breccia – and for Our Shareholders”
CEO Alain Lambert describes Hot Breccia as one of the most attractive copper exploration opportunities in North America and emphasizes that Prismo has consistently advanced the project towards drilling since the option agreement in January 2023. After evaluating various options – from internal drilling financing to a partnership with a major or collaboration with like-minded explorers – cooperation with Blade was identified as the best path.
Lambert highlights the extensive experience and track record of Blade’s investors in raising capital for exploration programs on the scale of Hot Breccia. At the same time, the structure offers Prismo several potential exit paths for its investment in Blade – from long-term holding to partial sales for project financing, or even a distribution of Blade shares to its own shareholders. Prismo is currently pursuing a long-term approach and points to the significant value appreciation potential with successful project development.
Strategic Advantages: Value Leverage Without Dilution
The company highlights several key strategic points of the transaction:
- Value Enhancement: Prismo converts its previous investments in Hot Breccia into a substantial stake in a company fully focused on advancing the project.
- Improved Capital Access with Limited Dilution: Fresh exploration capital can be raised through Blade without direct dilution of Prismo shareholders.
- Portfolio Focus: Prismo can now concentrate on its remaining Arizona projects, Silver King and Ripsey Gold, as well as Palos Verdes in Mexico, while Blade advances Hot Breccia.
- Greater Attractiveness for Majors: With the prospect of up to 100% project interest in Hot Breccia, Prismo sees Blade in a better position to attract potential major corporations or strategic buyers.
Dr. Linus Keating, Manager of the property owner Walnut Mines LLC, expressly welcomes the move and expects the transaction to pave the way for a “serious drilling program” in 2026.
Prismo Receives Additional Rights with Blade
Beyond the pure equity stake, Prismo secures additional rights with Blade that strengthen the company’s position.
- Nomination Right: Prismo can appoint a representative to Blade’s board of directors, who is yet to be named.
- Participation Rights: Blade grants Prismo participation rights in future equity financings, allowing Prismo to maintain its percentage ownership by subscribing at market terms.
Concurrently, Prismo is filing an “Early Warning” report in accordance with National Instrument 62-103, as the company previously held no Blade shares and the new stake is being acquired for investment purposes with a view to a potential listing of Blade in Canada.
Classification: Copper Leverage via Blade, Focus on Silver and Gold
Prismo remains an exploration company focused on silver and gold projects in Arizona and Mexico, including Silver King, Ripsey, and Palos Verdes. With the newly announced structure, shareholders gain indirect leverage to a large-scale copper project in the Arizona Copper Belt, without Prismo itself bearing the full financial burden of an extensive drilling program.
If Blade succeeds in confirming the potential of Hot Breccia through drilling and raising capital for further development steps, the stake could generate significant added value for Prismo and its shareholders. At the same time, the transaction clarifies the project portfolio and makes it easier for the company to concentrate its resources on advancing its remaining core projects.
