Hercules Metals Completes Closing of Share-Based Strategic Option Agreement with Barrick to Consolidate 73-Kilometres of Claims Around its Leviathan Copper Discovery in Idaho

Core Viewpoint - Hercules Metals Corp. has successfully closed a strategic option agreement with Barrick Gold Exploration Inc. to consolidate claims around its Leviathan copper discovery in Idaho, potentially increasing its land position significantly in a new porphyry copper belt [1][2]. Group 1: Agreement Details - The agreement allows Hercules to earn a 100% interest in over 74,000 acres of unpatented mining claims, known as the Olympus Claims, surrounding its Hercules property [2]. - The first payment under the agreement involved the issuance of 2,681,427 common shares to Barrick at a price of $0.74587136, based on the 5-day volume weighted average price prior to issuance [3]. - Hercules is required to reimburse Barrick for annual claim maintenance payments estimated at US$740,000 per year [4]. Group 2: Regulatory Considerations - The transaction is subject to review by the Committee on Foreign Investment in the United States, but the likelihood of a review is considered very low due to the transaction's value being below the applicable threshold [5]. Group 3: Company Overview - Hercules Metals Corp. is focused on developing a new porphyry copper district in Idaho, with the Leviathan porphyry copper system being a significant discovery in the region [6][7]. - The company aims to leverage its proven track record in discovering and developing precious metals projects globally to support its growth strategy [8].