Bear Creek Mining Corp. Monetizes Non‑Core Tassa Project in Peru

Bear Creek Mining Corp. (TSXV: BCM) announced on 10 December 2025 that it had entered into a definitive agreement to sell its 100 % interest in the non‑core Tassa mineral project, located in southern Peru, to Australian private company Colque Holding Pty Ltd. The transaction, which will be completed over a 30‑month period, is valued at US $3.5 million in staged payments.

Structure of the Sale

  • Up‑front Consideration: Colque will make an initial payment to Bear Creek upon signing the agreement.
  • Deferred Payments: The remainder of the $3.5 million will be paid in installments, secured by a first‑ranking security interest over the Tassa concessions.
  • Royalty Provisions: Once all deferred payments have been satisfied, Colque will grant Bear Creek a 2 % net smelter return (NSR) royalty on all minerals extracted from Tassa. Colque reserves the right to buy back 1 % of that royalty by paying an additional sum, thereby allowing Bear Creek a continued, albeit diluted, interest in the project’s future output.

Rationale for the Transaction

Bear Creek’s management has identified the Tassa project as non‑core to its strategic focus on high‑grade silver and gold assets. By monetizing the concession, the company will:

  1. Generate Liquidity – the cash inflow will strengthen Bear Creek’s balance sheet, providing flexibility for exploration and development of higher‑potential projects.
  2. Reduce Operational Burden – the company will no longer need to fund ongoing exploration, permitting it to reallocate capital and technical resources to more promising assets.
  3. Maintain a Strategic Footprint – the retained 2 % NSR royalty keeps Bear Creek partially invested in Tassa’s potential upside, offering a modest upside if the project yields commercially viable mineralisation.

Market Context

The sale comes amid a broader trend of Canadian miners divesting peripheral assets to shore up capital amid volatile commodity prices. Bear Creek’s 2025‑closing share price of CAD 0.57 sits below its 52‑week low of CAD 0.15, reflecting the market’s cautious stance toward small‑cap exploration companies. However, the company’s market cap of approximately CAD 166 million and a price‑to‑earnings ratio of –1.14 underscore its current valuation challenges, making liquidity‑generating transactions like this one particularly attractive.

Outlook

With the proceeds from the Tassa sale, Bear Creek is expected to accelerate drilling on its core silver and gold projects in Peru. The company’s management has reiterated its commitment to expanding its exploration portfolio while maintaining prudent capital discipline. Investors will likely monitor how the freed cash is deployed and whether Bear Creek can translate its exploration successes into the positive earnings profile reflected in its price‑to‑earnings ratio.

In summary, the sale of the Tassa project represents a strategic move by Bear Creek Mining Corp. to streamline its operations, strengthen its financial position, and preserve a modest future interest in a potentially productive Peruvian concession.