Shine Minerals Seeks Full Control of Silver District, Funds Exploration

Shine Minerals Corp. moved Tuesday to secure full control of a major local exploration target, signing a binding letter of intent dated December 10, 2025 to acquire an option to buy Red Cloud Silver Ltd., the private company that currently holds an option on the Silver District project in La Paz County. Under the agreement Shine will issue initial common shares and is committed to completing exploration expenditures. After spending two million dollars on exploration within one year Shine may exercise the option to acquire 100 percent of the project by issuing additional shares and making cash payments to Red Cloud Silver shareholders.

The letter of intent includes several customary conditions that make completion contingent rather than guaranteed. Among those conditions are minimum financing requirements, a planned consolidation of outstanding shares at a rate of five to one, required regulatory approvals including from the TSX Venture Exchange, and satisfactory due diligence. To fund transaction costs, reactivation of the project and the initial exploration program Shine intends a non brokered private placement of approximately C$1,000,000.

For La Paz County residents the agreement means exploration activity could resume in the months ahead. The two million dollar exploration threshold implies an aggressive first year program relative to many grassroots projects and would likely involve mapping, permitting, contractor mobilization and drilling if warranted. That activity can generate short term employment for contractors in drilling, logistics and environmental monitoring, and increased demand for lodging, fuel and other local services. County officials should expect notices and permit applications as work plans and timelines are finalized.

Market and policy considerations will shape whether the program proceeds. The planned share consolidation and new issuance will change the company capital structure and could affect investor interest and available funding. Regulatory approvals from the TSX Venture Exchange and other agencies will be required before the option can be exercised, and the company flagged forward looking statements and typical cautions about the conditional nature of the transaction.

If the option is exercised and the project advances toward production the local economic footprint would expand, but that outcome remains years away and dependent on exploration results, environmental permitting and metal prices. For now the LOI represents a concrete step toward renewed exploration on a significant La Paz County silver target and a near term uptick in local mining related activity.