Silver and gold often go hand in hand — after all, they are sister metals. That being said,
Bald Eagle Gold Corp. (TSX-V.BIG, Forum), which has historically been a gold exploration company, is shifting gears towards becoming fully focused on the white metal.
The company’s shift comes thanks to a purchase agreement with Osgood Mountains and Huizenga Exploration Group (HEG) that will help the company properly finance its newly acquired Hercules Silver property in Washington County, Idaho.
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In early October,
the Toronto-based junior mining company entered into a purchase agreement, through its wholly-owned subsidiary Frontera Gold Nevada, with Osgood Mountains and Huizenga Exploration Group (HEG), that will help Bald Eagle Gold focus more on the silver-based Hercules Project and its other 100 percent owned and operated properties. In other words this deal will allow Bald Eagle to double down on their efforts for their silver asset.
Purchase agreement with Osgood and HEG
In a press release, the company said that HEG will be assigned a 50 percent joint venture interest in relation to certain unpatented mineral claims and leases in Nevada that form the Hot Springs Property. Under the terms of the agreement, HEG will pay Bald Eagle a US$1.27 million transaction, in cash, at arm's length.
Bald Eagle will also recover all joint venture expenses incurred and payment and advances made to Osgood of $1.27 million. In other words, what this means is that transaction provides the $1.27 million of non-dilutive financing to allow the company to explore and develop activities at its recently acquired Hercules project.
Raymond Harari, president and director of Bald Eagle, said in a press release that his company has recently attracted directors and advisors that have helped the company determine shareholder value that will be maximized by operating wholly owned precious metals projects that are balanced with risk and return.
“This subsequent sale of our interest in the Hot Springs Joint Venture provides the Company with non-dilutive financing of $1,270,000 which can be directed to the wholly owned Hercules Project, in which we have a high level of confidence, as well as further expanding our portfolio of prospective assets,” he added.
The Hercules Property
Bald Eagle Gold
announced it had completed the acquisition of the property back in August. In a press release, the company said the property falls in line with Bald Eagle’s strategy of increasing shareholder value through quality precious metal properties with significant historical data.
Situated on the northwestern shoulder of Cuddy Mountain and located 200 kilometres from Boise, Idaho, the 866-hectare Hercules Property contains 40 unpatented Iode mining claims, one patented Iode claim and an additional 475 hectares with attendant access, exploration, mining, milling and water rights.
The Cuddy Mountain region is an uplifted and tilted fault block of accreted Mesozoic terrain roughly 19 kilometres across that is characterized by open grassy slopes.
Between 1965 and 1988, historical drilling included results from 307 drill holes and 320 metres of underground development. From the 307 holes, 28 were diamond drill holes, 43 were underground percussion and 236 were reverse circulation. From the drill campaigns, two target types were identified including high-grade silver with 1 to 2 percent lead and zinc, and lower grade disseminated silver suggesting bulk tonnage potential.
Historical drill intercepts include from hole 80-13 with 10.7 metres of 825 grams per ton (g/t) silver, hole PH 42 with 29.3 metres of 259 g/t and hole PH 33 with 14.6 metres of 562 g/t.
"The property we have acquired has been under-explored with modern exploration methods. Our team of geologists believe that there is potential for discovery of epithermal and/or magmatic hydrothermal silver mineralization within the Hercules Rhyolite. Historic drilling and underground exploration support this model at Hercules,” Sidney Himmel, president and CEO of Bald Eagle Gold, said in a press release.
The investment corner
While company and its management team has historically been known to advance exploration assets in known gold districts in the Americas, its transition into silver exploration is good news for the company and investors.
Case in point, the non-dilutive financing for funding the Hercules Property will help the company transition into one of the few solidly financed silver companies in the markets. The company explained that there are not many other companies purely focused on silver, this will provide Bald Eagle with a great opportunity to differentiate and put themselves ahead of the pack.
With an experienced team in moving precious metals projects forward, Bald Eagle presents itself as a sound investment opportunity thanks to its close-knit and technical team that has worked together in raising billions of dollars in capital for early-stage companies.
For more information, please visit
baldeaglegold.com.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.