KOH hydrolyses the thiazole ethyl ester to a carboxylate; acidification gives the acid. Silver(I) then activates the neighbouring alkyne towards intramolecular six-membered O-cyclization. The carboxylate oxygen attacks the alkyne carbon farther from the thiazole, so the new ring follows carbonyl C–O–distal alkyne C–proximal alkyne C–thiazole C4–thiazole C5. A vinyl-silver intermediate is protonated to give the fused pyrone G.
The remote terminal carboxylic acid survives. Ester hydrolysis changes E's formula by to ; the subsequent addition across the alkyne changes connectivity without altering that formula. This distinguishes the lactonizing carboxyl group at thiazole C5 from the side-chain acid, which is not the group closing the observed fused ring.
The acidic ethanolic step converts the terminal carboxylic acid to its ethyl ester, leaving the pre-existing thiazole ester. Azide then adds across the alkyne by 1,3-dipolar cycloaddition, followed by protonation at work-up. F contains an NH-1,2,3-triazole replacing the alkyne, with the thiazole and attached to its two carbon atoms. The thiazole's own COEt group remains.
The formula check is decisive:
One can represent the cycloaddition with cyclic movement of the azide resonance-form electrons and the alkyne electrons into the two new C–N bonds. Alkali azide initially gives a triazolide; aqueous work-up provides the NH. Interchanging formal 4/5 labels for the carbon substituents in an N-unsubstituted triazole does not establish a separate permanently fixed N-substituted regioisomer.