Lexston Mining Corporation Signs LOI to Acquire 16,000-Acre Mineral Claims in Northwest Guyana for $1.1 Million

Lexston Guyana Signs LOI for 15 Mineral Claims in Northwest Guyana

Lexston Mining Corporation revealed on July 14, 2026 that its wholly owned subsidiary, Lexston Guyana Inc., has executed a letter of intent with seller Joseph Jardine to acquire a 100% interest in 15 mineral claims in Guyana. This marks Lexston’s initial move towards establishing a mineral exploration footprint in South America, expanding its presence beyond British Columbia and Nevada.

The mineral claims cover about 16,000 acres in Region 1, Mining District 5 of Northwest Guyana, located within the Guiana Shield—a notable Precambrian geological formation known for gold and mineral deposits across multiple South American countries. No resource estimates, historical production, or drilling results have been disclosed for these claims.

US$1.1 Million Payment Plan Tied to Milestones and Annual Instalments

The acquisition price totals US$1,100,000 in cash, subject to a definitive purchase agreement. An initial refundable payment of US$25,000 was made upon signing the LOI. Subsequent payments include US$125,000 upon regulatory approval, US$150,000 ninety days after approval, a US$200,000 first annual instalment, and four annual instalments of US$150,000 each over years two to five. Timing depends on receipt of all required governmental and regulatory approvals.

Seller Retains 2% Net Smelter Royalty and Alluvial Gold Rights

Under the agreement, seller Joseph Jardine retains a 2% net smelter royalty on future production from the mineral claims, a common royalty structure entitling the holder to a percentage of revenue from processed ore. Additionally, Jardine maintains operational rights to alluvial gold on the property, which involves artisanal mining of gold deposits in riverbeds and sediments, distinguishing these rights from the hard-rock mineral exploration rights transferring to Lexston Guyana.

Exclusive 90-Day Due Diligence Period Granted to Lexston Guyana

Jardine has granted Lexston Guyana a 90-day exclusivity window to advance due diligence and finalize a definitive agreement. During this period, the seller cannot negotiate or enter alternative agreements regarding the mineral claims. Lexston will conduct a thorough review of title, permits, technical data, environmental factors, and other relevant matters. No independent technical or environmental reports have been released at this stage. The due diligence findings will influence whether the transaction proceeds.

Conditions Required for Acquisition Completion

Completion depends on satisfactory due diligence, execution of a definitive purchase agreement, and obtaining all necessary governmental, mining authority, and regulatory approvals in Guyana, including claim transfer and registration. Canadian regulatory approvals, including Canadian Securities Exchange clearances, are also required. The CSE disclaimer notes the exchange has not reviewed or accepted responsibility for the announcement’s content. There is no guarantee the acquisition will close as planned or at all.

CEO and Seller Highlight Strategic Importance of Guiana Shield Property

Lexston CEO Jagdip Bal described the LOI as a significant milestone aligned with the company’s strategy to expand its international exploration portfolio, emphasizing the importance of securing access to the Guiana Shield property. Seller Joseph Jardine expressed confidence that the partnership offers a clear path to advance exploration on these promising assets by leveraging Lexston’s resources and management. Both statements are forward-looking and subject to risks outlined in the release. No independent technical data has been provided to support prospectivity claims.

Lexston’s Existing Projects in British Columbia and Nevada Provide Context for Expansion

Lexston Mining Corporation currently holds mineral exploration projects in British Columbia and Nevada. The Guyana acquisition would diversify its geographic footprint into South America. No updates on the status of existing projects were provided. Lexston trades on the Canadian Securities Exchange (LEXT), OTCQB Venture Market (LEXTF), and Frankfurt Exchange (L75), offering broad investor access. The announcement’s impact on share price was not determinable at publication.

Forward-Looking Risks Related to Guyana Mineral Acquisition

The release outlines material risks including potential failure to complete the transaction, title and permitting challenges, environmental and regulatory hurdles in Guyana, and risks related to operating in a foreign jurisdiction. Additional risks include speculative exploration nature, absence of known resources, financing and currency risks due to US dollar payments, commodity price fluctuations, and the complexities of retained NSR and alluvial rights. Investors should view the LOI as a preliminary, non-binding step rather than a finalized acquisition.

Next Steps Depend on Regulatory Approvals in Guyana and Canada

Completion requires approvals from Guyanese governmental and mining authorities for claim transfer and registration, though specific agencies and timelines remain unspecified. Canadian Securities Exchange compliance clearances are also necessary. The CSE review process for foreign mineral acquisitions can be extensive, with timing and outcomes uncertain. Investors should monitor future company updates on due diligence, definitive agreement execution, and regulatory approvals in both jurisdictions.