Hybrid Announces Final Exchange Approval on Idaho based Horse Heaven Gold Project
Horse Heaven is comprised of 695 mining claims covering over 5,000 hectares
Vancouver, British Columbia –May 28, 2021 – Hybrid Minerals Inc. (TSX-V: HZ) (Frankfurt: HM4) (“Hybrid” or the “Company”) is pleased to announce that, further to the news release of March 1, 2021, the Company has received final approval from the TSX Venture Exchange on the Share Option Agreement (the “Agreement”), pursuant to which Hybrid has been granted the option to acquire all the shares outstanding in 1262446 B.C. Ltd. (“Horse Heaven Parent”). Horse Heaven Parent is the sole owner of Horse Heaven Holdings Inc. (“Horse Heaven Nevada”). Horse Heaven Nevada holds a 100% interest in the Horse Heaven Project (the “Project”). Pursuant to the terms of the Agreement, Hybrid will complete exploration work during the term of the Option, as described below.
“We are extremely pleased to have acquired this highly prospective project in Valley County, Idaho. Idaho is one of the most favourable mining jurisdictions in the world. We will benefit from a well-defined permitting process, community support and low geopolitical risk all while commencing exploration activity next to one of the largest independent gold reserves in North America,” said Mr. Drew Zimmerman, CEO of Hybrid.
Horse Heaven Project
The Project is comprised of 695 mining claims covering 5,644 hectares in Valley County, Idaho. The Project shares its eastern boundary with Perpetua Resources’ Stibnite Gold Project, one of the largest independent gold reserves, not only in the state, but in the country with over 6 million ounces gold (measured &indicated). The state has seen increased mining and exploration activity as companies alongside Hybrid desire projects in stable geopolitical locations with clear permitting procedures.
The Project’s historical exploration and two independent geophysical surveys indicate a buried intrusion, that is thought to be an Intrusion Related Gold System, similar to the deposit model at the Stibnite Gold Project adjacent to Horse Heaven. The project has two historical zones of exploration, the Golden Gate Fault Zone and Antimony Ridge Fault Zone with work that has shown anomalous gold in both geochemical and drilling results. Hybrid believes the property is vastly underexplored and that along with the two historical zones there are several other targets that have been identified for further exploration. While the focus of project will be gold exploration, historical data also shows strong potential of antimony deposits, a critical mineral not currently produced in the United States.
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.
Hybrid’s President and VP of Exploration, William Breen, has in depth knowledge of the Project through his, more than a decade, worth of work in the area and specifically on the Project. Mr. Breen will be leading the exploration efforts to update historical target zone areas and build mineral resource estimates.
In consideration of a 100% ownership interest in Horse Heaven Parent, the Company has agreed to pay a total of CAD$1,200,000 and issue an aggregate 36,000,000 common shares (the “Shares”) as follows:
- CAD$260,000 on signing the LOI & Agreement( paid);
- CAD$140,000 and 12,000,000 Shares following the satisfaction or waiver of all of the conditions precedent in the Agreement (the “Effective Date”);
- CAD$400,000 and 12,000,000 Shares on the first anniversary of the Effective Date; and
- CAD$400,000 and 12,000,000 on the second anniversary of the Effective Date.
The Company holds the right to accelerate any of these payments at its discretion and, upon all payments and share issuances being made, the option will be exercised.
The Project is subject, in whole or in part, to three separate royalties in the following amounts:
- 4% on 10 historical claims. Up to 3% of this royalty can be bought back for $100,000 USD per percentage point. There is no buyout on the final one percent;
- 3% on the entire Project; and
- 1% on the entire Project that can be bought back for $2,000,000 USD.
All shares issued pursuant to the Agreement will be subject to a hold period of four months and one day from issuance.
William Breen, (Registered Member 04203997 of SME), and is the Qualified Person as defined by NI 43-101, Standards of Disclosure for Mineral Projects, who has reviewed and approved the scientific and technical content of this press release. Mr. Breen is an officer of the Company.
On Behalf of the Board
Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.