Hispania Resources

Overview

Mining jurisdictions are nearly as important as the target mineral. Companies are more likely to succeed in a mining-friendly jurisdiction with clear policies, a stable political landscape, and a robust mining infrastructure. For example, Spain is a prime mining jurisdiction with a clear legal framework and trained local workforce. Additionally, Spain is considered the most mineral-rich country in Western Europe, making it attractive to mining companies.

Zinc outperformed expectations by hitting a 14-year high in 2021 with global demand to increase by 1.5 percent in 2023. As the fourth most widely consumed metal, it has applications throughout multiple industries, used for creating anti-corrosive alloys, pioneering new battery technology, and creating strong galvanized steel.

Demand for the multipurpose metal is expected to continue its upward trend as clean technology takes the main stage. The copper market, another multipurpose metal, is expected to grow by a compounded annual growth rate (CAGR) of 4.9 percent between 2022 and 2030. Mining companies targeting these increasingly important metals are setting themselves up for long-term success.

The company’s flagship project, Puebla de la Reina, covers nearly 9,000 hectares and has two promising mineralization areas with encouraging historical exploration results. In addition, the asset has a robust local infrastructure and is only five kilometers away from the nearest city. Promising copper-zinc-lead mineralizations and encouraging historical results make Puebla de la Reina a solid project, forming the backbone of the company’s portfolio.

Hispania Resources is preparing for the exploration program to be carried out at Las Herrerias, on the Puebla de la Reina property, located in Extremadura, Spain.

Multiple management team members were responsible for founding Iberian Minerals, the most significant base metals project in Europe and the largest employer in Southern Spain. Iberian Minerals went public in 1997, and Trafigura became a primary investor, eventually acquiring 52.2 percent of the company for a total evaluation of C$995 million. Managers that were instrumental in the impressive growth of Iberian Minerals are now focusing on repeating their success with Hispania Resources.

On April 25, 2023, Hispania Resources acquired 100 percent ownership in the Lumbrales Permit, situated in the Stanniferous Iberian Belt, a prolific mining region, which includes 100 tin and tungsten deposits in Spain and Portugal.

The company’s management team is one of its biggest strengths. Norman Brewster, CEO, has over 30 years of experience leading mining operations, and holds a bachelor of science degree. Kyle Appleby, CFO, brings 18 years of experience managing corporate finances for multiple industries, including cannabis and natural resources. Brian H. Newton, chief geologist, has 35 years of experience ranging from business development to program management and has been active in Spain, Mexico and Columbia.

Company Highlights

• Hispania Resources is an exploration and development mining company, led by a management team with directly relevant experience in building one of the most significant mining operations in Europe.
• The company's flagship project, Puebla de la Reina, has received historical exploration but minimal development. It contains two encouraging mineralizations that will receive additional exploration and potential development.
• The company now has 100 percent ownership of the Lumbrales Deposit in the Stanniferous Iberian Belt.
• Hispania Resources is led by a strong management team, previously leading other companies to impressive success, such as Iberian Minerals, which reached a total evaluation of C$995 million.
• New acquisition of promising assets and exploring its current flagship project are at the core of the company’s growth strategy.

Key Projects

Puebla de la Reina Zinc-Copper-Lead Project

The project covers nearly 9,000 hectares and contains two significant mineralizations that warrant additional exploration. Hispania Resources is now seeking to fully develop the property by leveraging the directly relevant experience of its management team.

Project Highlights:

• Historical Exploration But No Significant Development: The project has received attention from two previous entities dating back 40 years. The Geological Society of Spain first examined the property roughly 40 years ago, followed by Outokumpu (OTCMKTS:OUTKY) conducting further exploration ten years later.
• Encouraging Historical Resource Estimate: Outokumpu created a provisional resource estimate of 500,000 tons at 1.6 percent copper, 11 percent zinc, 1.2 percent lead, and 32 g/t silver.
• Ideal Location and Strong Infrastructure: The project is only five kilometers from the nearest city, 20 kilometers from the mining ministry office, 100 kilometers from the metropolis Seville, and 80 kilometers from the nearest concentrator. Additionally, the asset has roads, highway access, power, and water access.
• Future Exploration Campaigns Planned: The company plans to conduct modern exploration programs, including geophysical and magnetic surveys. This exploration, and any necessary follow-up survey programs, will help identify a future diamond drilling program. Onsite preparation for the exploration program at Las Herrerias, on the Puebla de la Reina Property, Spain, has begun.

Map of Las Herrerias, PBR property, showing areas that are considered to be geologically interesting and were selected for initial groundworks consisting of geophysics (electromagnetics) which were contracted to the firm Genostica, of Huelva, Spain

Hispania Resources has released the results of initial core samples that have been re-assayed from its Las Herrerais property, located near the village of Puebla de la Reina in Extremadura, Spain. The samples were procured from the secured facility that is controlled by the Geological and Mining Institute of Spain located in Pennaroya, Extremadura with copper grades ranging between 0.717 percent to 4.9 percent and an average of 1.6 percent. Zinc grades range from 0.2 percent to 30 percent and average 11 percent. The results are in line with the company’s initial plans to create a new copper-zinc producer in Spain.

Lumbrelas Permit

Acquired in April 2023, Hispania Resources’ 100-percent-owned Lumbrales Permit is situated in the Stanniferous Iberian Belt, a prolific mining region that includes more than 100 tin and tungsten deposits across Spain and Portugal.

The 2,900-hectare property contains the formerly producing Mari Tere mine, which had an established tin and molybdenum resources, and two other artisanal tin prospects in Castille, about 115 kilometers west of the city of Salamanca. As a past-producer, the property has existing infrastructure that allows Hispania Resources to quickly advance the project.

Management Team

Norman Brewster - Chief Executive Officer and Director

Norman Brewster has been involved in mining internationally for more than 50 years, serving on many public and private company boards over his career in the mineral industry. Norman was the executive chairman, and interim president of Iberian Minerals, successfully financing, developing, and putting into production the Aguas Tenidas Mine in Andalucia, Spain. During his tenure, Brewster led negotiations for the purchase of Condestable Mine by Iberian Minerals. He led a committee in reviewing the successful bid by Trafigura Group, with a 2015 revenue of US$97 billion, to acquire Iberian Minerals. Brewster also sat on a committee as a director of Spider Resources, which reviewed the successful all-cash acquisition of Spider Resources, by Cliffs Natural Resources. Currently, he is the president, director, and CEO of Cadillac Ventures, with a tungsten development project in New Brunswick. Brewster holds bachelor’s of science and education degrees from Acadia University and was approved as a member of the Association of Geoscientists of Ontario.

Kyle Appleby - Chief Financial Officer

Kyle Appleby is a seasoned CFO with management and board experience working at multiple companies over the past 18 years. Currently, Applyby is the CFO of Renforth Resources, DigiMax, and Spaceify, all of which benefit from his accounting expertise and pedigree. Appleby has also served on the boards of several companies, including URU Metals and Captor Capital, among others. He has a master’s degree from Southern Federal University and earned his chartered accountant designation in 2001. Since that time, Appleby has worked on both the audit and the issuer side of the business, concentrating on providing contract CFO services to a number of reporting issuers and private companies. Appleby is active in the resource, agritech, technology, and cannabis spaces with experience in take-overs and amalgamations.

Brian H. Newton - Chief Geologist

Brian Newton has over 35 years of experience in all facets of exploration, from business development and program management to field supervision and program execution. He is a managing partner with Minroc Management, a mining exploration service consulting firm, where he has ample experience in planning, budgeting, and executing mining exploration programs in small and medium-sized mining companies prospecting to the advanced surface and underground programs. Newton is actively involved in projects in Ontario, Quebec, New Brunswick, and Nunavut, and has been active in Spain, Mexico, and Columbia. He has experience in writing technical reports for mining companies, including the NI 43-101 technical report for the PBR Project.

Eduardo Olarte - Director

Eduardo Olarte has been working as an international lawyer focusing on business and corporate law. He has a law degree from the University of Barcelona and a master’s degree in international and comparative business law from London Metropolitan University. His practice focuses on business law, with specific expertise in the inter-jurisdictional transaction in the mining and energy sector. Olarte has been advising companies worldwide, including the UK, Canada, and Australia. He has experience in drafting title and corporate legal opinions for companies to comply with stock exchanges in London, Toronto, and Sydney in raising funds for Spanish exploration and other mining operations.

Rahim Allani - Director

Rahim Allani has been involved in Canadian and international capital markets for over 20 years. He is now a managing director at OCI, a global corporate finance advisory firm, focusing on cross-border mergers and acquisitions, corporate finance, and go-public work. He has extensive experience in working with Canadian and international mining companies for financing and going-public on exchanges in North America and Asia. Allani sits on boards and serves as an advisor for companies in several countries. He holds a master’s of business administration degree from the DeGroote School of Business at McMaster University and a bachelor’s of arts degree, with honours, from the University of Toronto.

Miguel Cabal - Director