CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This prospectus supplement, the accompanying prospectus, and the information incorporated by reference herein and therein contains certain forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, which we refer to as the Exchange Act. The Company uses the words “anticipate,” “continue,” “likely,” “estimate,” “expect,” “may,” “could,” “will,” “project,” “should,” “believe,” and similar expressions (including negative and grammatical variations) to identify forward looking statements. Such forward-looking statements include, without limitation, statements regarding:
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the Company’s ability to satisfy its financial and contractual obligations and other potential cash requirements over the next twelve months;
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the Company’s anticipated near-term capital requirements and potential sources of capital;
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expectations regarding 2025 general and administrative costs;
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the Company’s expectations regarding whether dividends will be paid in the future;
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compliance with existing legal and regulatory requirements, including future asset reclamation costs;
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the Company’s strategy for significant future investment in Oaxaca, Mexico, and in Michigan, USA, for development and exploration activities;
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expectations regarding capital investment, exploration spending, and general and administrative costs, including the Company’s near-term estimates for the cost of additional mining equipment, mill upgrades, and working capital;
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the Company’s expectations regarding future grades and recoveries from mining at the Company’s subsidiary, Don David Gold Mexico S.A. de C.V. (the “Don David Gold Mine” or “DDGM”), and its expectations regarding its ability to generate positive cash flow from future production at DDGM;
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future exploration plans at DDGM, including vein systems targeted for future exploration activity;
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estimates of mineral resources and mineral reserves;
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the Company’s expectation for the outcome of the 2015 DDGM tax audit;
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expectations regarding 2025 DDGM and the Company’s Back Forty Project capital investment; and
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the expected timing and success of the Back Forty Project with respect to permitting, detailed engineering, and project financing.
Forward-looking statements are neither historical facts nor assurances of future performance. Rather, they are based only on the Company’s current beliefs, expectations, and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy, and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict, and many of which are outside of the Company’s control. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, investors should not rely on any of these forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following:
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whether the Company is able to raise the necessary capital required to continue our business on terms acceptable to it or at all;
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the possibility of unforeseen production or processing challenges at DDGM, such as mechanical breakdowns, staffing shortages, weather events, unexpected decreases in grade, lower than anticipated production at existing mining faces, or inability or delays in opening new mining faces;
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commodity price fluctuations;
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mine protests and work stoppages;