Headwater Gold Inc. announced that it has entered into a definitive earn-in agreement with a subsidiary of 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 USD 25,000,000 and the completion of a preliminary economic assessment report. Highlights: Headwater has entered into a definitive earn the definitive earn-in agreement with Centerra for a subsidiary of Centerra to earn up to an 70% interest in Headwater' Crane Creek project in Idaho; Up to $25,000,000 in staged earn-in expenditures: Centerra may elect to earn up to a 60% interest in the Project by funding exploration expenditures of $25,000,000 and granting Headwater a royalty on the Project; Carried interest to completion of a PEA: Centerra may earn an additional 10% interest (up to 70%) in the Project by completing a preliminary economic assessment report on the Project; and The Project is fully permitted for drilling under a Notice of Intent with the Bureau of Land Management ("BLM") and a Plan of Operation with the Idaho Department of Lands. Commercial Terms: The Agreement grants Centerra the exclusive rig ht to acquire up to a70% interest in the Project, subject to the terms thereof, by making an initial cash payment of USD 87,000 to Headwater upon execution of the Agreement and subsequent annual cash payments of USD 50,000 thereafter starting on the first anniversary of the Agreement.
These payments are considered exploration expenditures for the purposes of the earn-in structure outlined below. Earn-in Structure: Stage 1: Centerra has the option to acquire a 51% interest in the Project by sole funding exploration expenditures of USD 10,000,000 within four years of the Execution Date. Stage 1 includes a firm commitment to fund a minimum of USD 2,500,000 in exploration within the first three years.
Centerra will be the initial operator of the Project. The Company has a large portfolio of epithermal vein exploration projects and a technical team with diverse experience in capital markets and major mining companies. Headwater is systematically drill-testing several projects in Nevada and has strategic earn-in agreements with Newmont Corporation on its Spring Peak and Lodestar projects and OceanaGold Corporation on its TJ, Jake Creek and Hot Creek projects.
In August 2022 and September 2024, Newmont and Centerra acquired strategic equity interests in the Company, further strengthening Headwater's exploration capabilities. Headwater is part of the NewQuest Capital Group which is a discovery-driven investment enterprise that builds value through the incubation and financing of mineral projects and companies.
