Bald Eagle (TSX.V: BIG) has entered into a binding LOI to acquire the historical Hercules project located in Idaho. The Hercules Silver Property is approximately 1490 acres
This newly announced acquisition will fit perfectly with management vision, in building a leading U.S.A focused junior-miner.
Bald Eagle Gold (TSX.V: BIG) has entered into a binding letter of intent dated (the LOI) with 1218530 B.C. Ltd. to acquire the right and title to the Hercules silver property located in Washington county, Idaho. The proposed acquisition (the "Transaction") will be completed through the acquisition of all of the issued and outstanding shares of the Seller by the Company. The Property is held directly by ANGLO-BOMARC, US, INC., ("Anglo-Bomarc"). Anglo-Bomarc is a wholly owned subsidiary of the Seller. The Transaction is consistent with the Company's strategy to build precious metal resources in recognized mining-friendly jurisdictions and meets the Company's project evaluation and selection criteria, specifically:
Idaho is contiguous to and north of Nevada (location of Bald Eagles Hot Springs Joint Venture).
According to Annual Survey of Mining Companies, 2020, Fraser Institute, Idaho is ranked the ninth and Nevada is ranked the first jurisdiction for exploration and mining investment out of 77 locations around the world. These jurisdictions are ranked on geological attractiveness and government policy.
The Transaction complements the Company's precious metal investment in Nevada with diversification into silver. In addition to being a recognized precious metal, silver has a significant number of commercial and industrial applications (solar, electric vehicles and electronics).
Six mineralized areas have been identified along the 10,000 feet (3,048 metres) of Hercules rhyolite underlying the length of the Property. From south to north, they are Belmont, Haystack Ridge, Fishpond, Hercules Adit, Hercules Ridge and Grande Creek.1
Following earliest drilling (1965) near the Hercules Adit, surface drilling, guided by soil geochemistry, focused on five additional areas and it was clear that anomalous silver greater than one ounce per ton is widespread in the Hercules rhyolite.1
Between 1965 and 1988 work by eight companies resulted in thirteen drill programs and about 1,045 feet (319 metres) of lateral underground advance. The drill programs produced 28 core holes, 43 underground percussion holes and 236 reverse circulation rotary holes. Select results from the Hercules Adit Area of the Property, include:
The technical information disclosed in this news release, including historical drilling results on the Hercules Property are referenced from the technical report entitled "NI 43-101 Technical Report on the Hercules Silver Property, Washington County, Idaho for First Idaho Resources Inc. and Anglo-Bomarc Mines Ltd., June 2012, By T.W. Muraro, P.Eng." (currently available on First Idaho Resources Inc.'s SEDAR profile at www.sedar.com, filing date, April 3, 2013).
A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the issuer is not treating the historical estimate as current mineral resources or mineral reserves. A Qualified Person has not verified historical drilling results or information disclosed in this press release, including sampling, and analytical test results. A summary of past quality control measures is not available, other than reviewing the results from the NI 43-101 herein referenced.
Transaction Terms and Conditions
Pursuant to the terms and conditions of the LOI, the Company will acquire all the issued and outstanding shares of the Seller for C$150,000 in cash and 1,400,000 common shares of the Company. In addition to the foregoing, on commencement of commercial production on the Property, a payment of $1,000,000 will be made to the Seller. The Seller will also be granted a 2% net smelter royalty ("NSR"), subject to a $1,000,000 buyback for one-half (1.0%) of the NSR. Concurrently with the execution of the LOI, Bald Eagle has paid a non-refundable deposit of $25,000 to the Seller.
Mr. Sidney Himmel, President and CEO of the Company, commented: "Bald Eagle is dedicated to the building of precious metals resources in the worlds top mining jurisdictions. This Transaction is consistent with the transactional model implemented by the Company and is representative of the financial and technical skillsets of our management team and the board. Located directly to the north of our Nevada asset, where we have confirmed the presence of an epithermal system, the initial programs for the Hercules Silver Property will recompile historic geochemical, drilling, sampling, and analytic data to create an appropriate exploration plan within the context of modern technologies of geochemistry, geophysics, genetic modeling, and metallurgy. The Hercules Silver Property is highly prospective for silver, yet it has been underexplored over the past several decades. We look forward to exploring this potentially significant silver property. After viewing dozens of projects, we are very pleased with the outcome of our efforts and look forward to the completion of this acquisition, subject to the completion of the various closing conditions."
*DISCLAIMER: Bald Eagle is a paid marketing client*