Headwater Gold and Centerra Gold Sign US $25 Million Earn-In Agreement to Explore the Crane Creek Gold Project in Idaho

Core Insights - Headwater Gold Inc. has entered into a definitive earn-in agreement with Centerra Gold Inc. for Centerra to earn up to a 70% interest in Headwater's Crane Creek project in Idaho through staged exploration expenditures totaling up to US$25,000,000 and the completion of a preliminary economic assessment report [1][3][4] Agreement Structure - The earn-in agreement allows Centerra to acquire a 70% interest in the Crane Creek project by making an initial cash payment of US$87,000 and subsequent annual cash payments of US$50,000 starting on the first anniversary of the agreement [5][6] - The agreement consists of three stages: - Stage 1: Centerra can earn a 51% interest by funding US$10,000,000 in exploration expenditures within four years, including a minimum commitment of US$2,500,000 in the first three years [6][7] - Stage 2: Centerra may earn an additional 9% interest (up to 60%) by funding an additional US$15,000,000 within four years following Stage 1 [7][8] - Stage 3: Centerra can earn an additional 10% interest (up to 70%) by completing a preliminary economic assessment report that includes a minimum of 1,000,000 ounces of gold equivalent within two years following Stage 2 [8] Project Overview - The Crane Creek project is located in western Idaho, approximately 18 km northeast of Weiser and 90 km northwest of Boise, and is fully permitted for drilling [9][11] - The project encompasses an array of mineralized epithermal quartz veins and features characteristics of a well-preserved low-sulfidation system [9][12] - Historical drilling from 1984 to 1996 primarily targeted shallow mineralization, with significant potential for high-grade veins at greater depths remaining untested [12][13] Exploration Plans - Headwater and Centerra will work together to finalize an integrated exploration plan that incorporates recent geophysical datasets and historical results, with the goal of initiating Phase 1 drilling as early as spring 2026 [14]