Horse Heaven

Optionor to acquire 80% of Horse Heaven for up to $2.2M and $5M Work Commitment

Stallion has signed a binding Letter of Intent, in which the Optionor may acquire eighty percent (80%) of the issued and outstanding common shares (the “Horse Heaven Parent Shares”) of 1262446 B.C Ltd. (“Horse Heaven Parent”), a wholly owned subsidiary of the Company, which holds an undivided 100% legal, beneficial and registerable interest in the Property, in consideration of the following to the Company:

1. $200,000 in cash on the date that the LOI is executed;
2. $200,000 in cash on the date in which a definitive agreement (the “Definitive Agreement”) is entered into;
3. $300,000 in common shares of Privco (“Privco Shares”) at a deemed price per Privco Share equal to $0.18 per Privco Share on the effective date of the Definitive Agreement;
4. $50,000 in cash and $200,000 in Privco Shares at a deemed price per Privco Share equal to the price of the underlying securities sold in Privco’s most recently completed equity financing at the date of issuance (the “Financing Price”) on the first anniversary of the effective date of the Definitive Agreement;
5. $50,000 in cash and $200,000 in Optionor Shares at the Financing Price on the second anniversary of the effective date of the Definitive Agreement;
6. $50,000 in cash and $200,000 in Optionor Shares at the Financing Price on the third anniversary of the effective date of the Definitive Agreement; and
7. $50,000 in cash and $200,000 in Optionor Shares at the Financing Price on the fourth anniversary of the effective date of the Definitive Agreement.

In addition, the Optionor must complete an aggregate of $1,000,000 in exploration expenditures to advance the Property prior to the first anniversary of the effective date of the Definitive Agreement (the “Expiry Date”) and completing an additional $4,000,000 in exploration expenditures within the next three (3) years from the Expiry Date to advance the Property.

The Company shall also be eligible to receive the following milestone payments:

1. If Horse Heaven Parent receives a drill permit for Antimony Ridge drill from the United States Forest Service, the Optionor shall pay the Company $250,000, which shall be payable in cash or in Optionor Shares (at the Financing Price), at the Optionor’s sole discretion.
2. If Horse Heaven Parent receives funding from the United States Government in excess of USD $5,000,000, the Optionor shall pay the Company $250,000, which shall be payable in cash or in Optionor Shares (at the Financing Price), at the Optionor’s sole discretion.

The LOI shall terminate if the parties have not entered into a definitive agreement by October 30, 2024.  The definitive agreement is subject to the receipt of any third-party consents or regulatory approvals, including but not limited to any necessary stock exchange approvals required by the Company or the Optionor, respectively.

Horse Heaven Project Overview

The Horse Heaven Project consists of 699 unpatented federal mining claims with 100% ownership of mineral rights over 5,817 hectares in Valley County, Idaho. The property is located 212 km northeast of Boise, Idaho and shares its eastern boundary with Perpetua Resource's Stibnite Gold Project. The project has had historical production of Antimony and Tungsten, both listed as Critical Minerals in the United States. 

Stallion believes the property is underexplored and that along with the two historical zones of production Golden Gate Fault Zond and Antimony Ridge, there are several other targets that merit further exploration. The Project has year-round road access, close proximity to electrical transmission lines, available access to water rights and a state maintained 1,000m airstrip adjacent to the property.

The option agreement allows for Stallion to retain significant upside exposure to the Horse Heaven project while requiring no near term capital investment. Stallion believes the advancement of the district with the adjacent Stibnite Project, one of the only near term sources of Antimony in the US, along with a high-grade gold mines. The successful permitting of the Stibnite project would create significant value for the area.

 

 

 

 

 

 

 

 

 

 

 

 

The Right Neighbours

The Horse Heaven Project shares its entire eastern boundary with Perpetua Resources Stibnite Gold Project. 
Recent milestones of Perpetua Resources:

• Received Draft Record of Decision & FEIS
• Received $59.4M in Depart of Defense funding for Antimony
• Received $1.8 Billion Letter of Interest from Export-Import Bank of the United States for project debt financing
• Signed $8.5M Silver Royalty agreement with Franco-Nevada
• Redeveloping what will be one of largest, high grade and low-cost independent gold mines in the United States
• Historical Production of 980K ounces has Measured and Indicated Resource of additional 6 M oz’s gold¹
• Able to produce up to 35% of annual US antimony needs²

1https://perpetuaresources.com/wp-content/uploads/2021/02/2021-01-28-Stibnite-Gold-Project-Feasibility-Study-Final.pdf?v=122111

2https://perpetuaresources.com/wp-content/uploads/2023-Why-Perpetua-.pdf?v=122111

Horse Heaven is an Expansive Land Package - Over 21sq miles

• Multiple Target Zones- Golden Gate Fault, Antimony Ridge Fault , Salt Creek Fault
• Historical RC drilling in 1986, 1987 & 1994 exploring for shallow heap leach oxide gold along limited areas of the mineralized structures.  

  Historical reported gold intercepts*
  GGR-31	36.6m 1.51 g/t Au
  GGR-32	71.6m 1.37 g/t Au
  GGR-33	54.9m 1.03 g/t Au

  *All drilling information is historical in nature and a qualified person has not done sufficient work to classify historical estimates herein as current mineral resources
• Two independent geophysical surveys show the buried intrusion, indicating further evidence of IRGS Model
• Gold mineralization occurs in similar orientated structures, host rocks, with similar magnitude of anomalies and size of geochemical and geophysical signatures as found at Perpetua Resources

Critical Minerals - Antimony

As of May 2018 the Department of the Interior designated Antimony critical to the Economic and National Security of the United States. Currently the US relies entirely on imports as it does not have any production.

Exploration for Antimony deposits is being pursued as historical records show Antimony has been produced and shipped from the properties Antimony Ridge

Infrastructure

• Year round road access to the property, secondary road access on property
• close proximity to electrical transmission lines
• State of Idaho maintained 1000 meter airstrip adjacent to the property
• good accessibility to water rights

The content of this website has been reviewed by William Breen, P. Geo., President and VP Exploration of Stallion Gold. Mr. Breen is a Non-Independent Qualified Person as defined under the terms of National Instrument 43-101.