Starcore's OTCQX Upgrade: A Strategic Play for US Capital in a Hot Metals Market

NEW YORK, NY – June 17, 2026 – In a calculated move designed to capture the attention of American investors, Starcore International Mines Ltd. (TSX: SAM; OTCQX: SHVLF) today graduated from the opaque Pink sheets to the OTCQX Best Market. While a change in stock market tiers may seem like a procedural footnote, for the Mexico-focused precious metals producer, this is a pivotal strategic maneuver. It's a bid to enhance transparency, boost liquidity, and tap into the world's largest capital market at a time when gold and silver are experiencing a historic bull run.

This upgrade isn't merely about a new ticker symbol; it's about signaling a new phase of maturity for the company. As businesses across all sectors seek innovative ways to fund growth and expand their reach, Starcore's move provides a compelling case study in leveraging financial platforms to unlock value. But does the glitter of a premium market listing match the reality on the ground?

The Strategic Upgrade: Unlocking U.S. Capital

The OTCQX Best Market, operated by OTC Markets Group, is designed for established, investor-focused companies that meet high financial standards and adhere to robust corporate governance. For an international firm like Starcore, whose primary listing is on the Toronto Stock Exchange (TSX), qualifying for OTCQX is akin to earning a seal of approval for the U.S. market. It allows the company to use its Canadian regulatory filings to provide U.S. investors with reliable, real-time data—a world away from the limited disclosure environment of the Pink sheets.

“We are pleased to qualify for trading on the OTCQX Market, which enhances our visibility and accessibility for U.S. investors,” said Robert Eadie, President and CEO of Starcore, in today's announcement. He emphasized that the platform will support “greater communication with our U.S. shareholder base while broadening awareness of our company within the North American investment community.”

This move places Starcore in the company of other international miners like Cambria Gold Mines and Hemlo Mining Corp., which have recently made similar upgrades. The underlying logic is clear: a more transparent and accessible stock is often a more liquid and attractive one, especially to institutional funds and retail investors who are barred from or wary of lower-tiered markets. By meeting OTCQX’s stringent criteria—including audited financials and regular shareholder meetings—Starcore is making a deliberate statement about its commitment to investor relations and corporate integrity.

A Look Under the Hood: Operations and Challenges

While a polished market presence is crucial, an investment case is ultimately built on operational performance. Starcore’s primary assets are its San Martin gold-silver mine and the La Tortilla silver project, both located in Querétaro, Mexico. The San Martin mine, the company's workhorse, has been a tale of resilience and adaptation.

The past year has been a rollercoaster. The fiscal year ending April 2025 was solid, with C$32.2 million in sales. However, the second quarter of fiscal 2026 (ending October 2025) saw the company post a loss, plagued by production issues including a "preg-robbing effect"—a technical headache where gold leaches back onto carbon particles in the ore, hindering recovery.

True to their word, management addressed the issues, and the third quarter showed a dramatic turnaround. The mine returned to full production, generating over C$8.4 million in positive cash flow. Yet, the fourth quarter brought fresh challenges, with mining difficulties in a high-grade area forcing the company to pivot and develop a new ore body. This operational narrative—of confronting problems, investing in solutions, and navigating the geological uncertainties inherent in mining—paints a realistic picture. It underscores that success in this industry is less about smooth sailing and more about nimble crisis management.

As of the last quarter, the company was processing carbonaceous ore grading a respectable 3 g/t gold, a positive sign that its technical adjustments are bearing fruit. The ongoing geophysical surveys covering 70% of its concession area also hint at a long-term vision focused on resource expansion.

Navigating the New Mining Landscape in Mexico

Perhaps one of Starcore's most forward-thinking innovations lies not in its financial maneuvering or geological techniques, but in its social and political strategy. Operating in Mexico requires navigating a complex and evolving regulatory environment, exemplified by the country's 2023 Mining Law. This legislation places a new, stringent emphasis on community consultation and consent before mining operations can proceed.

Here, Starcore has demonstrated impressive foresight. In May 2026, its Mexican subsidiary secured a 10-year "social license" agreement with the El Doctor Agrarian Community for its La Tortilla project. This agreement goes beyond mere access rights; it codifies a partnership that includes job creation, economic support, and infrastructure improvements for the community. It even opens the door for local entrepreneurs to provide transportation services to the mine.

By proactively engaging with the community and formalizing a mutually beneficial relationship, Starcore has not only complied with the spirit and letter of the new law but has also de-risked its project significantly. In an era where ESG (Environmental, Social, and Governance) factors are paramount for investors, securing a social license to operate is as valuable as discovering a new vein of gold. It’s a tangible asset that protects shareholder value from social and political disruption.

Riding the Precious Metals Wave

Starcore’s strategic moves are unfolding against a spectacular backdrop for precious metals. Gold prices surged 75% in 2025, shattering the $5,000 per ounce barrier in early 2026. Silver’s performance was even more dramatic, with prices rising 148% in 2025 to an all-time high of over $121 per ounce, driven by voracious industrial demand from the solar and electronics sectors.

While prices have since corrected, the consensus among major financial institutions is bullish. J.P. Morgan forecasts gold averaging $6,000/oz by late 2026, while the Silver Institute projects a sixth consecutive year of a structural supply deficit for silver. This sustained market strength, fueled by geopolitical tensions, persistent inflation, and relentless central bank buying, provides a powerful tailwind for producers.

For a smaller producer like Starcore, this high-price environment is a double-edged sword. It offers the potential for immense profitability but also magnifies the pressure to execute flawlessly on production. The company's ability to manage its all-in sustaining costs, which have been elevated, will be critical. The upgrade to OTCQX gives Starcore a better platform to tell its story and raise capital, but it is the company's operational execution at the San Martin mine and the successful development of La Tortilla that will ultimately determine if it can fully capitalize on this historic market opportunity. For Starcore, the move to OTCQX is not just a change of ticker, but a bet that its operational agility in Mexico's challenging terrain can translate into significant value for a new class of U.S. investors watching from the sidelines.