Toronto – October 12, 2026 -- Highlander Silver Corp. (TSX, NYSE American: HSLV) held about US$100 million in unaudited cash and no debt as of March 31 and forecasts a year-end cash balance of roughly US$60 million, according to its first portfolio update since completing the combination with Bear Creek Mining.
The Mercedes gold-silver mine in Sonora, Mexico, made a positive cash contribution in its first month of operations after restructuring under the new owner. President and CEO Daniel Earle said the baseline spending plan preserves flexibility to scale up exploration programs later in the year.
Corani site preparation advances ahead of a staged Feasibility Study due by end of Q3
Highlander is preparing Corani in Puno, Peru, which it describes as the largest fully permitted primary silver project in the world. Earthworks for internal roads and platforms have begun, camp and facility improvements are underway, and substation construction is in progress. Access road rehabilitation is also underway.
Several milestones fall in late Q2 2026: long-lead-time equipment orders will be placed, powerline construction will start, and new road construction will begin.
An updated Feasibility Study using a staged-development approach is due by the end of Q3 2026. Highlander says the approach aims to maximize returns per share while mitigating capital expenditure, funding, timeline and execution risks.
Appointed contractors and consultants include MINSYS Mining Systems for resource, reserves and mine planning, and Ausenco Engineering for the processing plant and infrastructure. ApuCorp, Xplomine and CumbrEx are the contractors. Carlos Ojeda joins as Vice President & General Manager. He previously led teams of up to 500 people at Anglo American's Quellaveco mine in Peru.
Corani exploration expands with first drilling in over a decade
The company completed its first-ever airborne magnetic survey, covering 620 line km and the majority of the land package. It finished 54 km of a planned 60 km induced polarization survey and expanded the program to 96 km to cover potential extensions interpreted from the results.
The first of four planned rigs is now drilling in the first program at Corani in over a decade. The rigs target exploration, resource growth, infill and oxide drilling, plus technical drilling for optimization studies. A standalone exploration update with early results is due later this quarter.
Mercedes restructuring removes gold stream and settles debt
Highlander extinguished what it called an excessive gold stream and settled debt. It expects Mercedes to generate free cash flow net of planned critical investments. The company also restored working capital, settled overdue payables and union agreements, and is settling minor unpaid taxes while establishing a bonding program.
Mercedes produced 30 koz of gold in 2025. Orlando Chumpitaz, previously Senior Mine Manager at Lundin Gold's 5,000 tpd Fruta del Norte mine in Ecuador, becomes Vice President & General Manager.
The recapitalization plan covers:
- infill and definition drilling to improve the reserve model;
- accelerated mine development;
- upgrades to ventilation, electrical systems, surface water management and underground pumping;
- geotechnical drilling and support systems to improve safety and reduce dilution;
- right-sizing of mine contractor deployment;
- expansion of tailings management facilities to support mine life extensions;
- resumption of greenfield and brownfield exploration.
Permitting is also advancing at San Luis, which the company describes as one of the highest M&I resource grade projects in both the gold and silver sectors.