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Headwater Gold (CSE: HWG)(OTC: HWAUF) CEO Caleb Stroup on Strategic Financing with Rick Rule & Jeff Phillips as Lead Orders
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, it's great to have you on. How are you today?
Caleb Stroup: I'm doing great. Great to be here.
Gerardo Del Real: Well, listen, our space is like a lazy river. It takes a little bit to get going and it doesn't seem like it's very exciting, but once you find that flow, things happen really quickly and before you know it, you're having a blast.
I recommended Headwater Gold in one of the paid services that I manage and write, I don't know, maybe six months ago. And I did so because of the technical team, your involvement, and I really liked the jurisdiction that you were exploring in. The company sat idly for several months. The market was a little tepid and there wasn't much movement despite some really good technical success and some really good partnerships. You fast forward here to August the 14th and all of a sudden you are up some 30% in my portfolio since the recommendation, after being down some 20%. And you just announced a very, very strategic private placement with lead orders from none other than Rick Rule and Mr. Jeff Phillips, who of course is a mutual friend and a mentor to me.
Congratulations, the structure of the $1,000,000 financing is extremely, extremely attractive to me. I would love for you to provide the details. Clearly the market liked it, given the fact that you're trading some 25% above the financing price.
Caleb Stroup: I think it's a really great outcome here and allows us to bring in an extra $1,000,000 to scale up our efforts in our ongoing business model in what I think we all perceive as a market that's heating up and a sector that's getting more and more attention. To be recognized by people like Rick Rule and Jeff Phillips I think is another vote of confidence in our business strategy and technical team and just what we're doing and where we're doing it.
And to your earlier comment, sometimes things take slower to develop than you'd hope, but I've always been a firm believer that if you're doing the right things in the right places, looking for high grade gold in Nevada with a strong technical focus and a proven business model that you're going to be rewarded. You might not be able to predict exactly when, but it all comes back around.
Gerardo Del Real: I think that's well said.
What comes next? Literally, in this case, the $1,000,000 question. You're getting funds. You have some amazing partnerships, a lot, a lot – and when I say a lot, I mean over $100,000,000 in exploration, partner funded exploration. A lot to like given where gold and precious metals are and given the jurisdictional prudence that you've had with the projects that you've brought on under the Headwater Gold banner. What comes next, Caleb?
Caleb Stroup: We're looking forward to a pretty busy second half of the year on the partner funded side, especially. As you know, we have a couple of joint venture projects with Newmont. We're looking to drill one of those in the short term, the next couple of months. We're waiting on one final permit for that, but are teed up to execute that program this year.
And then relatively recently, we put together an LOI for three partnerships with OceanaGold. We're expecting to complete the definitive agreement and get drilling immediately this fall under those agreements. There's going to be quite a bit of activity, really in keeping with our overall history of drilling multiple projects every year and giving our shareholders multiple shots on goal for early stage success and real high upside, high grade gold targets in Nevada.
Gerardo Del Real: No, look, I think your timing is excellent. I think the model that is so attractive to Rick and to Jeff is going to prove itself out here over the next several months and years.
Can you touch a bit on the structure of the deal and not as far as having the $1,000,000 and the lead order and all that, but the one-year hold is the part that I know was attractive to Rick. I spoke with him yesterday, and I spoke with Jeff as well. You know the typical junior mining financing and how that goes. A lot of people will participate in a financing and get a warrant and then in four months and one day when the hold comes off, you see your stock being sold into the market where people essentially sell into the market and just hold onto the warrant as the lottery ticket. Clearly Jeff and Rick are not looking to do that and are volunteering and requiring anyone participating in this financing to lock their shares up for a year, which is impressive.
Caleb Stroup: Obviously that's very attractive to me as well, and a great signal from those guys that they intend to be long-term shareholders and are true believers in the model that we're pursuing here. I think that is a great tangible outcome here of none of these shares are going to fly into the market to scalp a warrant in the next year. And just the messaging that this is a long-term view on a group that's doing the right thing, so I think from both perspectives it's very attractive to me.
Gerardo Del Real: Good stuff, good work. I'm looking forward to some success with the drill bit, and again, I think that we're in for a heck of the rest of the year.
Caleb Stroup: I do too. Cross your fingers and we'll get to work.
Gerardo Del Real: All right Caleb, stay tuned. We'll see you soon. Cheers.
Caleb Stroup: All right, thanks.
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