Spanish Mountain Gold Advances BC Hydro Grid Connection and Appoints Exploration VP
Spanish Mountain Gold Ltd. (TSXV: SPA; FSE: S3Y; OTCQB: SPAUF) has signed a Facilities Study Agreement with BC Hydro and Power Authority to advance electricity interconnection planning for its Spanish Mountain Gold project in British Columbia, Canada. The company also announced the appointment of Michael Buchanan, P.Geo., as Vice President of Exploration, strengthening its technical leadership as the project progresses toward a feasibility study and a potential construction decision.
The Spanish Mountain Gold project is located in the Cariboo Gold Corridor of British Columbia. The agreement with BC Hydro represents a step toward establishing the electricity infrastructure required to support the proposed mine, including a planned 60-megawatt electrical load. The project will require a new 230-kilovolt switching station, with construction planning and engineering work forming part of the facilities study process.
Peter Mah, President and Chief Executive Officer of Spanish Mountain Gold, said the agreement represents an important milestone in advancing the project toward a construction decision. He identified secure, reliable and clean electricity as a key component of the company’s development strategy.
Mah also highlighted Buchanan’s experience in managing large-scale exploration programs and working with communities. He said the appointment would strengthen the company’s team as it continues technical studies and prepares the project for its next development stages.
BC Hydro Facilities Study Agreement
Under the Facilities Study Agreement, BC Hydro and Spanish Mountain Gold will evaluate the infrastructure required to connect a 60 MW electrical load to the provincial electricity grid. The proposed connection requires a new BC Hydro 230 kV switching station, referred to as SMM, near the existing BC Hydro McLeese Lake Capacitor Station.
The facilities study will cover feasibility design and project definition activities. These activities are intended to establish the technical requirements and implementation parameters for the proposed interconnection.
The scope includes engineering design, project management, stakeholder engagement and the preparation of capital cost estimates. The estimates are expected to have an accuracy range of plus or minus 15%, providing a basis for evaluating the anticipated cost of implementing the electricity connection.
Spanish Mountain Gold expects the facilities study to be completed in the second half of 2027. The proposed switching station is targeted to be ready for operation in the first half of 2030. These dates represent the company’s current project targets and are subject to the progress of planning, engineering and implementation activities.
The planned infrastructure is intended to provide the electrical capacity required for the project’s proposed operations. Advancing the interconnection study will help define the work needed to establish a grid connection and clarify the associated technical and financial requirements.
Electricity supply is an important consideration for mine development because it affects operating infrastructure, energy costs and the potential environmental footprint of a project. Spanish Mountain Gold has identified grid electricity as a central element of its plan to develop a mine with lower carbon emissions and lower operating costs.
The company is continuing several workstreams as it advances toward a construction decision. These include the facilities study, the environmental assessment process and the feasibility study. The company also referenced its 2026 Preliminary Economic Assessment update, announced in a September 21, 2026, press release, as part of its broader development program.
The Facilities Study Agreement adds another component to this work by progressing the planning required for the proposed grid connection. Further engineering and project definition activities are expected to provide additional information about the infrastructure needed to support the planned electrical demand.
Michael Buchanan Appointed Vice President of Exploration
Spanish Mountain Gold has appointed Michael Buchanan, P.Geo., as Vice President of Exploration, effective October 26, 2026. He will lead the company’s exploration and resource development programs as the Spanish Mountain Gold project advances through its feasibility study.
Buchanan is an economic geoscientist with more than 20 years of international experience in grassroots and near-mine exploration for base and precious metals. His professional background includes technical leadership, regional exploration management, project portfolio evaluation and oversight of exploration budgets.
He most recently served as Director of Exploration for the Americas at Teck Resources Limited from 2020 to 2024. In that role, he led exploration country managers and regional chief geologists working across copper and zinc projects. His responsibilities included presenting project portfolios supported by annual exploration budgets exceeding $50 million.
Before that appointment, Buchanan held other senior exploration positions at Teck Resources. He served as Director of Exploration for North America from 2017 to 2020 and Manager of Exploration for Canada and the United States from 2013 to 2017.
Earlier in his career, Buchanan worked for Anglo American between 2005 and 2013. His positions included Exploration Manager in Chile, General Manager in Peru and Senior Geologist covering Mexico and the United States. These roles provided experience across different jurisdictions and mineral exploration environments.
Buchanan’s background also includes a focus on health, safety, environmental management and community programs. These areas are relevant to exploration and resource development activities as mining projects progress through technical studies, permitting and project planning.
He holds a Master of Economic Geology from the University of Tasmania and a Bachelor of Science with Honours in Geology from the University of British Columbia. Buchanan is a Professional Geoscientist registered with Engineers and Geoscientists British Columbia.
He also served as an elected Board Director of the Association for Mineral Exploration British Columbia from 2015 to 2021. His industry experience and professional qualifications will support his responsibilities for Spanish Mountain Gold’s exploration and resource development programs.
Incentive Stock Option Grant
Spanish Mountain Gold also announced an incentive stock option grant covering an aggregate of 775,000 common shares. The options were granted to certain company officers, employees and consultants under the company’s Stock Option Plan.
The options have an exercise price of $0.235 per share and a term of ten years. They are scheduled to expire on October 19, 2036.
The grant forms part of the company’s compensation arrangements for eligible personnel and consultants. The options provide the recipients with the right to purchase common shares at the specified exercise price during the applicable term, subject to the terms of the Stock Option Plan and the grants.
Advancing Project Development
The agreement with BC Hydro and the appointment of a new Vice President of Exploration mark two developments in Spanish Mountain Gold’s ongoing project advancement activities.
The facilities study is intended to define the engineering requirements, implementation scope and estimated capital costs associated with connecting the proposed 60 MW load to the provincial grid. The targeted completion date is the second half of 2027, while the new 230 kV switching station is planned to be operational in the first half of 2030.
At the same time, Buchanan’s appointment adds an experienced exploration executive to the company’s leadership team. His responsibilities will include directing exploration and resource development work as the project moves through feasibility.
Spanish Mountain Gold continues to advance the project through its electricity interconnection planning, environmental assessment, feasibility work and economic evaluation. The outcomes of these activities will contribute to the technical and commercial information required for the company’s future construction decision.
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