Heritage Mining expands Melba land package

Executive Summary

• Heritage Mining Ltd. has entered a definitive asset purchase agreement to acquire 12 unpatented mining claims adjacent to its Melba mine project from DH Exploration Inc.
• The acquisition expands Heritage's land package to approximately 3,886 hectares, consolidating ground around the historic Melba mine in the Kirkland Lake gold district.
• The transaction involves the issuance of 1.5 million common shares, $30,000 in cash, and a 1% net smelter return royalty, with closing subject to regulatory approval.

Key Details

• Transaction Structure: Heritage Mining Ltd. is acquiring 12 unpatented mining claims from DH Exploration Inc.
• Consideration:
  • Equity: 1.5 million common shares of Heritage Mining Ltd.
  • Cash: $30,000 total, payable in equal $5,000 monthly instalments over a five-month period, with the first instalment due within two business days of signing.
  • Royalty: A 1% net smelter return (NSR) royalty on the acquired claims, granted on the date of closing.
• Closing Conditions: Subject to customary conditions precedent, including full payment of cash instalments and approval by the Canadian Securities Exchange (CSE).
• Project Expansion: The acquisition adds to existing staking around the Melba mine, bringing the total project size to approximately 3,886 hectares (including one mining lease).
• Asset Description: The Melba mine is a former past producer from the early-mid 1900s, located in the Kirkland Lake gold district in Northwestern Ontario, approximately seven kilometres west of King's Highway 11. Heritage is currently in the process of earning a 75% interest in the Melba mine.
• Strategic Context: The move consolidates Heritage's footprint in a proven gold camp, coinciding with pending diamond drill results at the Melba project.

Notable Quotes

• "Consolidating this ground around the historic Melba mine is a meaningful step in building Heritage's footprint in one of Canada's most proven gold camps. We look forward to further updates on our current diamond drill program in short order." — Peter Schloo, President, CEO, and Director