Hercules Metals closes Olympus option from Barrick

Executive Summary

• Hercules Metals completed a share‑based strategic option agreement with Barrick Gold Exploration, enabling it to earn a 100 % interest in over 74,000 acres of mining claims surrounding its Leviathan copper discovery in Idaho.
• The closing involved issuance of 2,681,427 common shares to Barrick at $0.7459 per share (five‑day VWAP on the TSX‑V).
• The transaction expands Hercules’ land position to >100,000 acres in the emerging Idaho porphyry copper belt and is expected to have a positive impact on the company’s growth prospects.

Key Details

• Agreement Parties: Hercules Metals Corp. (and its U.S. subsidiary Anglo‑Bomarc U.S. Inc.) with Barrick Gold Exploration Inc., a wholly owned U.S. subsidiary of Barrick Mining Corp.
• Asset Acquired: Option to earn 100 % interest in the “Olympus” claims – >74,000 acres of unpatented mining claims surrounding the Hercules property and Leviathan porphyry copper system.
• Land Position Post‑Transaction: Over 100,000 acres in Idaho’s newest porphyry copper belt.
• Consideration Paid: 2,681,427 common shares issued to Barrick at $0.74587136 per share (five‑day VWAP on TSX‑V).
• Annual Claim Maintenance Obligation: Hercules will reimburse Barrick for U.S. Bureau of Land Management and county recorder fees estimated at US $740,000 per year.
• Regulatory Review: Subject to CFIUS review; deemed “very low” likelihood of mandatory filing due to transaction value being well below the threshold.
• Contingency Clause: If a CFIUS‑mandated divestiture occurs, Barrick will return shares/cash proportionate to any claims reconveyed; reimbursement payments already made by Hercules are non‑refundable.

Notable Quotes

(No direct quotes were provided in the release.)