Categories: Precious Metals
Topics: Gold Stocks

Headwater Gold (CSE: HWG)(OTC: HWAUF) CEO Caleb Stroup on $40 Million JV with Newmont at Spring Peak Gold Project

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the president and CEO of Headwater Gold (CSE: HWG)(OTC: HWAUF) Mr. Caleb Stroup. Caleb, great to have you on. We chatted a bit off-air. We most definitely have a precious metals bull market. You, sir, are most definitely taking advantage of the network, the background, the experience. Newmont just elected to advance to stage two of the Spring Peak earn in agreement. That was a significant announcement and I'd love for you to provide the details because the market really, really loved it.

Caleb Stroup: Yeah, no, we're very excited about this. So this marks the completion of the first stage of exploration Whereby they got their feet wet in here and now we're moving to stage two, which includes much more significant spend over the next few years, $40 million US to get them from a 51% interest to a 65% interest. So that'll really allow us to execute the plan down here in exploring for a major Newmont size gold deposit and give this project the exploration it really deserves.

Gerardo Del Real: Well, listen, I know that the stock has had a good run this past month. It's up some 37, 38%, but let's put things into perspective and provide some context here. That US $40 million funding is more than your current market cap, if I have that correct. I think your current market cap sitting somewhere right around the $46 million market, if I'm not mistaken, that doesn't take into account the other agreements that you've been busy inking, and I know that behind the scenes you're busy working to cement more of those. Can you speak to the valuation where you feel Headwater is at and then what comes next to unlock more of that value?

Caleb Stroup: Yeah, so as you said, just to be clear, this applies only to one of our assets, the Spring Peak project, which we've been exploring under an earn in partnership with Newmont. We also have one additional earn in partnership with Newmont that's a very similar deal structure, albeit a year or so behind in timeline because it came in at a later date than the original one. And then beyond that, we have very recently announced an ally on three additional projects in partnership with Oceania Gold. So that's five partner funded projects across our broader portfolio. And you're right, just this Newmont component, the spending contemplating this stage two is more than our current market cap. So the rest of it is, I guess, effectively for free.

Gerardo Del Real: No, listen, that's a lot of upside. What do you expect between now and year-end? I know you are busy, busy, busy.

Caleb Stroup: Yeah, so we're looking to get started on a first pass drill program at Lodestar, the Newmont funded program that's just right next door to Spring Peak. Actually, it joins it in the next week or two here. We're waiting one final signature on our permit, but expect to get that one moving ahead. And then beyond that, the Oceana agreement in Northern Nevada is just about to be finalized as well, which we'll see at least one project being drilled still in 2025. We're buttoning up the definitive agreement and final budgets and work plans and everything there. And I expect to be able to update the market on that pretty shortly, but we're definitely planning on kicking that off in the short term as well. So lots of activity on those partner funded projects and beyond with our greater portfolio of about a dozen projects. I think I've said before, there's been an increased level of interest generally from prospective partners and things as the market overall warms up and the gold price goes up and the balance sheet of the big companies improves even more, that level of interest has continued to increase as well. So we're fielding a number of different possibilities more broadly in the portfolio as well.

Gerardo Del Real: Well listen, you have one of the better technical teams in the junior resource space. You are in top notch jurisdictions, and sir, we have a gold bull market, so it should be a fun end to the year, a blockbuster 2026. Looking forward to the truth machine getting busy going again and seeing what Mother Nature left behind. Anything to add to that, Caleb?

Caleb Stroup: Yeah, no, we're super excited. This market is what we've been waiting for a while, so the sun is shining and it's time to go out there and make some hay.

Gerardo Del Real: Love it, love it. Look forward to having you back on. Take care, Caleb.

Caleb Stroup: All right, thank you.

Gerardo Del Real: All right, cheers.

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