Texas Mineral Resources Corp. Reports $1.27 Million Net Loss for Nine Months Ending May 31, 2025

Texas Mineral Resources Corp. reported its financial results for the nine months ending May 31, 2025, revealing a net loss of approximately $1.27 million, compared to a net loss of $617,017 for the same period in the previous year. The company's total operating expenses increased to $942,781 from $731,596, primarily driven by a significant rise in exploration costs, which surged to $281,387 from $58,360. General and administrative expenses remained relatively stable, totaling $661,394, down slightly from $673,236 in the prior year. The company continues to operate without generating revenue, maintaining an accumulated deficit of approximately $44.45 million.

In terms of financial position, Texas Mineral Resources reported total assets of $1.35 million as of May 31, 2025, a substantial increase from $906,493 at the end of the previous fiscal year. This growth was largely attributed to an increase in cash and cash equivalents, which rose to $779,880 from $428,197. However, the company also saw a significant rise in current liabilities, which jumped to $833,019 from $42,664, primarily due to the issuance of convertible notes totaling $698,725. The company's shareholders' equity decreased to $519,112 from $863,829, reflecting ongoing losses and dilution from its membership interest in Round Top Mountain Development, LLC.

Strategically, Texas Mineral Resources has made notable moves, including the acquisition of the Carlisle mine and related real estate from its CEO, Dan Gorski, for a promissory note of $75,000. The company also entered into a non-binding letter of intent with Steeple Rock Holding Company to explore a potential mining venture involving several mines in New Mexico. Additionally, the company has been actively pursuing a joint venture with Santa Fe Gold Corporation to explore silver properties in New Mexico, although the success of these initiatives remains uncertain.

Operationally, the company has not received any cash call notices from Round Top during the fiscal year, which has allowed it to avoid further dilution of its membership interest, currently at 19.323%. However, the company anticipates that it may need to raise additional capital to fund future cash calls or repay its short-term convertible debt of $1.1 million due in August 2025. The management has expressed substantial doubt regarding the company's ability to continue as a going concern, emphasizing the need for successful financing strategies to support ongoing operations and development projects.

Looking ahead, Texas Mineral Resources is focused on securing the necessary funding to support its exploration and development activities, particularly at the Round Top Project. The company acknowledges the challenges posed by its current financial position and the competitive landscape for rare earth elements, which are critical for various high-tech applications. The management's outlook remains cautious, with an emphasis on the need for strategic partnerships and financing to navigate the upcoming fiscal periods successfully.