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Headwater Gold and OceanaGold Sign Letter of Intent to Explore Three Projects in Nevada
Thenewswireยท2025-07-22 13:30

Core Viewpoint - Headwater Gold Inc. has signed a non-binding Letter of Intent with OceanaGold Corporation for a potential acquisition of up to a 75% interest in Headwater's TJ, Jake Creek, and Hot Creek projects in Nevada through staged exploration expenditures totaling up to US$65 million and the completion of Pre-Feasibility Studies [1][2]. Proposed Transaction Structure - The LOI outlines a staged earn-in process where OceanaGold can acquire interests in the projects through specific expenditures over defined timeframes [2][5]. - The minimum commitment includes US$1 million for TJ and Jake Creek, and US$500,000 for Hot Creek within the first two years [5]. - The stages include: - Stage 1: US$10 million for TJ and Jake Creek, US$5 million for Hot Creek to earn 51% within four years [5][6]. - Stage 2: Additional US$15 million for TJ and Jake Creek, US$10 million for Hot Creek to increase interest to 65% within four years [6]. - Stage 3: Completion of Pre-Feasibility Studies to earn up to 75% [7]. Financial Terms - OceanaGold will make a non-refundable payment of US$150,000 to Headwater for pre-drilling expenses [2][3]. - Upon execution of the Agreement, OceanaGold will pay an additional US$200,000 in two installments [3]. Project Details - The TJ project is located in northeastern Nevada and shows potential for high-grade epithermal vein-style mineralization [7][8]. - The Jake Creek project has historical drilling results indicating widespread epithermal mineralization, with notable intercepts of 11.3 g/t Au over 1.52 m [9]. - The Hot Creek project is royalty-free and has historical drilling results showing grades up to 1.04 g/t Au over 12.2 m [10]. Company Background - OceanaGold is an intermediate gold and copper producer with a portfolio of four operating mines [11]. - Headwater Gold is focused on exploring high-grade precious metal deposits in the Western USA and has strategic partnerships to enhance its exploration capabilities [12].