Borealis Mining Company Limited

Borealis Mining has assembled a high-calibre management team with strong operational and capital markets credentials. CEO Kelly Malcolm is a Professional Geologist with a track record from Amex Exploration Inc., where he led discovery drilling that helped raise over $90M and earned the company Exploration Company of the Year at Mines & Money 2022. Non-Executive Chairman Robert Buchan founded Kinross Gold — which grew into the third-largest primary gold producer in North America — and later co-founded Katanga Copper. Board member Christina McCarthy brings five years of Director-level experience at McEwen Mining.

Insider alignment is substantiated by real dollars. As at early 2025, insiders collectively owned approximately 38% of shares outstanding worth roughly C$16M at then-current prices. Insiders purchased C$5.0M worth of shares in a single quarter with zero recorded sales. Key anchor shareholders are Rob McEwen (~14% stake) and Eric Sprott (~8.2% non-diluted as of September 2025). These are names that do serious diligence before committing seven-figure capital.

One deduction from a perfect 5: CEO Malcolm, while a proven exploration geologist, is managing his first mine restart as a CEO. The operational complexity of simultaneously ramping the Borealis Mine, advancing Sandman engineering and permitting, and managing a dual-asset story is significant execution risk. Robert Buchan's chairmanship provides experienced oversight but does not fully mitigate this.

Borealis Mining operates two Nevada gold assets at different stages. The Borealis Mine (Hawthorne, NV; Walker Lane trend) has historically produced over 600,000 oz of gold via conventional heap leaching and has a 21-square-mile land package. However, the current NI 43-101 resource at the Borealis Mine is historical (2011, Gryphon Gold Corporation pre-feasibility vintage) — approximately 95,600 oz Au + 476,500 oz Ag M&I at 0.87 g/t Au — and a Qualified Person has not issued a current compliant resource estimate. Active high-grade drill results at Cerro Duro (4.48 g/t Au over 30.5m including 15.16 g/t Au over 6.1m in oxides) demonstrate strong exploration upside, but no compliant resource exists for the mine site.

The Sandman Gold Project (Humboldt County, NV) provides the NI 43-101 backbone. The 2021 compliant resource totals 21.8Mt at 0.70 g/t Au for 494,000 oz: Indicated 18.6Mt at 0.73 g/t for 433,000 oz + Inferred 3.2Mt at 0.58 g/t for 61,000 oz. No Measured resources exist. The February 2026 updated PEA (effective January 5, 2026, NI 43-101 compliant) models 340,000 oz LOM production over ~9 years at ~38,000 oz/yr from conventional open-pit heap leaching with a 2.2:1 strip ratio. The PEA study level carries PEA-stage caveats — it incorporates Inferred resources and no Mineral Reserves have been declared.

Score of 3: a PEA-stage primary asset (Sandman) built on Indicated + Inferred ounces, plus a producing but resource-uncertified secondary asset (Borealis Mine). A compliant Borealis Mine resource and Sandman PFS would be required to score 4.

Following the C$23M January 2026 bought deal (15,341,000 shares at C$1.50, full exercise of underwriters' option), Borealis held US$21.13M cash as at January 31, 2026 — a substantial improvement from US$3.18M at July 31, 2025. Working capital was approximately US$26.7M. This liquidity is meaningful relative to the ~US$36M Sandman initial capex requirement, particularly with Borealis Mine production revenues now flowing ($1.42M in Q2 FY2026).

Share count growth has been rapid: from ~83M basic shares (July 2024) to ~115M (July 2025) to ~147.5M post-January 2026 bought deal — a ~77% increase in under two years. Fully diluted count is approximately 153–155M, adding ~913K compensation warrants at C$1.50, ~4.5M Gold Bull warrants at C$0.30 (March 2027 expiry — deep in-the-money, near-certain exercise providing cash), and ~1.3M option replacements. Warrant overhang is manageable and the in-the-money warrants represent incremental treasury, not dilutive risk. No excessive debt is apparent. Score of 3: adequate liquidity and disciplined capital raises, but rapid share count growth (~77% in two years) prevents a higher score.

The catalyst pipeline is unusually dense for a junior of this size. At the Borealis Mine, the first production blast was completed January 28, 2026 (East Ridge open pit); as of March 30, 2026 the company has moved ~602,000 tons of material and crushed ~45,000 tons with a fully staffed ~30-person on-site team. Gold pours from the historical stockpile heap leach are running through mid-2026. Fresh-ore mining from the East Ridge pit is underway now.

At Sandman, the April 13, 2026 announcement initiated detailed engineering, permitting, and technical programs — the formal transition from study to execution phase. The existing ADR processing facility at Borealis Mine is flagged as a potential carbon processing hub for Sandman, which reduces the capital hurdle. Drill-result catalysts at Borealis Mine (Cerro Duro high-grade oxide, Graben deposit) could yield a new compliant NI 43-101 resource. Score of 4: a construction/production decision at Sandman and a new compliant Borealis Mine resource — both probable within 12–18 months — were not yet announced, preventing a score of 5.

The Sandman PEA (February 2026, NI 43-101, PEA study level) generates a post-tax NPV(6%) of US$203M at US$2,600/oz gold and US$696M at US$4,550/oz. With gold at approximately US$4,830/oz on April 15, 2026, the spot-price Sandman NPV is conservatively estimated at approximately US$730M. Dividing by ~155M fully diluted shares yields an unadjusted NAV per share of approximately US$4.71 (CAD$6.50 at 1.38 FX rate).

Applying a 50% discount for PEA-stage risk (no Mineral Reserves established, no PFS, partial Inferred reliance, Nevada permitting and construction financing not yet secured) yields a risk-adjusted NAV per share of approximately US$2.35 (CAD$3.25). At the current stock price of CAD$1.35, the implied P/NAV on this risked basis is approximately 0.42x — a meaningful discount. The Borealis Mine producing asset adds strategic value not captured in the Sandman-only NAV. Score of 3: the 0.42x P/NAV is compelling, but no Mineral Reserves have been declared and the project is at PEA stage only — full-cycle value realisation depends on a successful PFS and construction decision that is at minimum 2–3 years away.