Texas Mineral Resources Corp. Reports Increased Net Loss and Improved Financial Position for Six Months Ending February 28, 2025

Texas Mineral Resources Corp. (TMRC) reported its financial results for the six months ending February 28, 2025, revealing a net loss of approximately $471,050, compared to a net loss of $362,653 for the same period in the previous year. The company continues to operate without generating revenue, maintaining an accumulated deficit of about $43.6 million. Operating expenses for the current period totaled $437,131, a decrease from $469,044 in the prior year, primarily due to reduced general and administrative costs, which fell from $461,166 to $411,394.

The company's financial position has improved significantly, with total assets increasing to $1.76 million as of February 28, 2025, up from $906,493 at the end of the previous fiscal year. This increase is largely attributed to a rise in cash and cash equivalents, which grew to $1.18 million from $428,197. The company also reported a working capital surplus of approximately $698,000, indicating a stronger liquidity position. However, TMRC faces challenges with short-term convertible debt totaling $1.1 million, which is due in August 2025, raising concerns about its ability to meet these obligations without additional financing.

Strategically, TMRC has made notable developments, including the acquisition of the Carlisle Mine and related real estate from CEO Dan Gorski for a $75,000 promissory note. The company also entered into two loan agreements in February 2025, raising a total of $1.1 million through unsecured promissory notes and issuing warrants for common stock. These financing efforts are critical as TMRC continues to explore its mineral properties, particularly the Round Top Project in Texas, where it holds a 19.323% interest in Round Top Mountain Development LLC (RTMD).

Operationally, TMRC has not received any cash call notices from RTMD during the current fiscal year, which may indicate a pause in funding requirements for the Round Top Project. The company has not commenced commercial production and anticipates further dilution of its membership interest if it cannot fund future cash calls. TMRC's exploration activities are ongoing, with plans to conduct a district-wide evaluation in collaboration with Santa Fe Gold Corporation for potential joint ventures in New Mexico.

Looking ahead, TMRC's management has expressed concerns regarding its ability to continue as a going concern, emphasizing the need for additional capital to fund operations and repay debts. The company is exploring various financing options, including the potential sale of equity, but acknowledges the risks associated with dilution and market conditions. The outlook remains uncertain as TMRC navigates its exploration stage and seeks to establish profitable operations in the future.