Headwater optionee to continue with Spring Peak earn-in

Executive Summary

• Newmont Corp. has completed Stage 1 of the Spring Peak earn‑in and elected to proceed to Stage 2, committing up to US$40 million in additional exploration funding.
• Upon successful completion of Stage 2, Newmont may increase its ownership from 51% to 65%; a further optional Stage 3 could raise its stake to 75% contingent on a pref‑feasibility study and royalty grants.
• Headwater remains the operator, earning a 10% management fee, and plans to submit an expanded drill program of 266 new sites to test extensions of high‑grade zones.

Key Details

• Stage 1 Completion: Newmont funded US$15 million of exploration, securing a 51% interest in Spring Peak.
• Stage 2 Commitment: Up to US$40 million to be spent within 36 months; potential increase to 65% ownership.
• Stage 3 Option (optional): Additional 10% stake (total 75%) if Newmont finances a pref‑feasibility study within two years and grants Headwater a 2% NSR royalty on 100% owned claims plus a 1% NSR on inlying optioned claims.
• Operator & Fees: Headwater continues as operator, receiving a 10% management fee on all exploration expenditures.
• Exploration Plan: Submission of an expanded drill permit covering 266 new sites to test extensions of the Disco zone, Shadow target, and other district‑scale targets.
• Recent Drill Results (Disco Zone):
• 15.92 g/t Au over 2.38 m
• 10.43 g/t Au over 2.01 m
• Broader zone: 2.73 g/t Au over 34.72 m
• Infrastructure Proximity: Adjacent to Hecla Mining’s Aurora complex with a 600‑t/d mill, water wells, and high‑voltage power available.
• Option Structure: Headwater holds an option to acquire 100% of the project from Orogen Royalties; Newmont retains its earn‑in rights up to 75% based on spending and study milestones.

Notable Quotes

“The completion of Stage 1 and commencement of Stage 2 at Spring Peak represent a major milestone for the project and the company… The $40‑million potential funding included in Stage 2 positions the company to aggressively explore the district‑scale potential of the project.” – Caleb Stroup, President & CEO, Headwater Gold Inc.