Vancouver, BC – September 08, 2026 -- Red Metal Resources Ltd. (CSE: RMES) (OTCPINK: RMESF) (FSE: I660) has completed its first copper sulphide ore deliveries to Empresa Nacional de Minería's (ENAMI) Vallenar processing plant, roughly four months ahead of the seven-month development timeline set out in its mining lease.
KMT delivers 591.66 tonnes of copper ore in 16 truckloads
Lessee and operator Minera KMT SpA hauled the stockpiled ore from Level 7 of the north tunnel at the Farellon 1/8 concession to ENAMI on August 20th and 21st, 2026. The delivery, weighing approximately 591.66 tonnes net, followed the May 14th, 2026, mining lease and royalty agreement between Red Metal and KMT, arriving within roughly three months rather than the projected seven.
Royalty structure delivers non-dilutive cash flow to Red Metal
Through its wholly-owned subsidiary Minera Polymet SpA, Red Metal holds a 10% net sales royalty on all minerals KMT sells to ENAMI from the Farellon 1/8 concession. After deducting a pre-existing 1.5% royalty owed to the original concession vendor, Red Metal's net effective royalty stands at 8.5%. Final assay results and settlement payment from ENAMI remain pending, and KMT is contractually required to reach and sustain minimum production of 2,500 tonnes per month after the development period concludes.
CEO cites copper prices near record highs as backdrop for milestone
President and CEO Caitlin Jeffs, P.Geo., said the ore deliveries provide the company with non-dilutive revenue to offset general and administrative costs while it prioritizes drill targets at the Carrizal Copper-Gold-Cobalt Property. Red Metal is monitoring the operation through bi-weekly site visits by an in-country field technician and has collected ten rock samples (FTN036L7 through FTN045L7) from Level 7 for independent copper, gold and silver assay analysis, with results pending.
Company expands Chilean lease portfolio and exploration program
Beyond the KMT agreement, Red Metal signed a second small-scale mining lease and royalty deal on August 12th, 2026, with Construcción Minería y Servicios Catalina Ltda. covering its Irene and Margarita concessions. Earlier in 2026, the company completed a LiDAR survey and structural interpretation over the Carrizal Property and launched a three-dimensional induced polarization (IP) geophysical survey, which has defined a kilometre-scale coincident chargeability-resistivity target remaining open at depth and along strike. Red Metal also engaged investor relations firm Jimini Capital and market maker ITG, and received proceeds from warrant exercises during the year.
KMT to scale toward minimum monthly production target
KMT will continue development and ore production on Level 7 of the north tunnel as it works toward the 2,500-tonne monthly minimum specified in the lease. Red Metal plans to integrate its IP survey data with other exploration results to finalize priority drill targets at Carrizal ahead of planned drilling later in 2026.