Harvest completes Urban Barry option payments to EGR

Harvest Gold Corp. has fulfilled all cash and share payment obligations under its option agreement with EGR Exploration Ltd., officially securing a 100% interest in the Urban Barry property located in the Quebec Abitibi region. The total consideration paid for the transaction included $90,000 in cash tranches and the issuance of 1.75 million common shares.

Under the terms of the agreement, Harvest Gold must complete two years of work commitments before returning any claims. Exploration expenditures to date total $200,000. EGR Exploration retains a 2.0% net smelter return (NSR) royalty, with a buyback option for $1,000,000. A future contingency requires the issuance of an additional 1,000,000 shares if a NI 43-101 inferred resource of 1,000,000 ounces gold equivalent or greater is achieved.

The release includes a correction regarding the Mosseau drill program contractor, clarifying that the original contractor lacked Lac Simon approval but partnered with a company owned by a Lac Simon member.

EGR Exploration Ltd. (EGR) has completed the option payments required to secure the Urban Barry property, a routine milestone for a junior explorer advancing a new asset. The transaction does not immediately de-risk the property or generate revenue. The site remains in the early exploration stages, with only $200,000 spent to date and significant overburden covering the target greenstone belt.

The agreement retains a 2.0% NSR royalty and includes the potential for up to 2.75 million additional shares in dilution, factors that limit immediate upside. The news aligns with previous expectations for the earn-in transaction, securing the asset while requiring substantial further capital and drilling to advance. The impact on the stock price is neutral, as the market typically prices in completed option payments for pre-revenue juniors.

Harvest Gold Corp. is a pre-revenue gold exploration company focused on the Quebec Abitibi region. Its flagship project is the Urban Barry property, a 19 km long by 4 km wide greenstone belt that hosts Gold Fields' Windfall deposit, providing regional geological credibility. The property is heavily covered by overburden, which complicates exploration and requires significant drilling and geophysical surveys to identify and quantify resources. Management has conducted high-resolution airborne magnetic surveys, property-wide till surveys, prospecting, and mapping, with $200,000 in exploration expenditures to date.