Hercules Metals signs lease option for 1,472.65 acres

Executive Summary

• Hercules Metals secured a definitive lease with an option to purchase for 1,473 acres of private land contiguous to its Hercules project in Washington County, Idaho.
• The expansion increases the company's surface mining rights from approximately 1,800 to 3,273 acres, strengthening control over the Leviathan porphyry copper system and targeting a south-trending exploration corridor.
• The transaction establishes an 8-year lease with $125,000 annual payments and an exclusive option to acquire the property for $4.5M–$5.8M USD.

Key Details

• Land & Location: 1,473 acres of private land in Washington County, Idaho, directly along trend with the Leviathan porphyry copper system.
• Geological Target: Includes surface and mineral rights along a south-trending corridor featuring strong magnetotelluric (MT) conductivity anomalies, indicating potential for system extension.
• Lease Structure: 8-year lease granted to wholly-owned U.S. subsidiary, Anglo-Bomarc U.S., Inc.
• Annual Payments: $125,000 USD, payable in advance at the commencement of each lease year.
• Purchase Option: Exclusive and irrevocable option to acquire 100% interest at fair market value, with a minimum price of $4.5M USD and a maximum price of $5.8M USD.
• Appraisal Mechanism: Purchase price determined via independent appraisal; each party appoints a qualified appraiser, with a third appraisal triggered in case of material variance.
• Exploration Rights: Exclusive rights to conduct all mineral exploration activities, including drilling and geophysical surveys, during the lease term.
• Termination Clause: Anglo may terminate the agreement at any time with 30 days written notice, subject to satisfying all outstanding obligations, including reclamation.
• Technical Validation: Scientific and technical information reviewed and approved by Dillon Hume, PGeo, VP Exploration, a Qualified Person under NI 43-101.

Notable Quotes

• Chris Paul, CEO: "This agreement secures a highly strategic block of private land contiguous with our Hercules project, where exploration indicates strong potential to extend the Leviathan system south. The transaction provides long-term exploration certainty, flexibility and a clear pathway to ownership of private land that is well positioned to support future development activities, including potential site infrastructure."