Mercedes mine is currently owned and operated by Bear Creek Mining Corporation, who purchased the mine from Equinox in April 2022.  Under the terms of the royalty, Bear Creek pays to Sandbox a 2% NSR, payable on a quarterly basis from the minerals (which includes all precious and base metals) produced from the property.

The Mercedes district has been the focus of mining activities dating back to the late 19th century. Commercial production commenced at the Mercedes Mine in 2011 and the mine has produced over 840,000 ounces of gold. Mercedes’ mill has a current capacity of 2,000 tonnes per day, with gold recoveries averaging approximately 95% over the mine’s life. Proven and Probable Reserves as of September 30, 2024 totaled 427,976 tonnes grading 3.95 grams per tonne gold and 22.71 grams per tonne silver, containing 54,291 ounces of gold and 312,496 ounces of silver. Measured and Indicated Resources (inclusive of Mineral Reserves) as of September 30, 2024 totaled 2.3 million tonnes with an average grade of 5.98 grams per tonne gold and 52.12 grams per tonne silver, containing 449,677 ounces of gold and 3.9 million ounces of silver Mercedes has a strong track record of reserve replacement and sits on a highly prospective land package. Information sourced from NI 43-101 technical report on Mercedes gold-silver mine with an effective date of September 30, 2024.  This report is available under Bear Creek Mining’s profile on SEDAR.com.