Barrick Backs Hercules in Leviathan-Linked Copper Expansion

Hercules Mining (TSXV:BIG,OTC:BADEF) has entered into a transformative agreement with Barrick Mining (TSX:ABX,NYSE:B) to acquire a vast package of unpatented copper claims surrounding its Leviathan discovery in western Idaho.

Hercules will have the option to acquire a 100 percent interest in more than 74,000 acres of claims, collectively known as the Olympus belt, that flank both sides of the company’s existing Hercules property.

If exercised, the deal would expand Hercules’ total land position from 26,000 acres to over 100,000 acres, granting it control over a 73-kilometer stretch of highly prospective terrain.

The transaction is structured as an option agreement through Hercules’ US subsidiary, Anglo-Bomarc, with Barrick Gold Exploration, a wholly owned subsidiary of Barrick Mining.

In exchange for the land package, Barrick will increase its equity stake in Hercules and retain a 1 percent net smelter return (NSR) royalty on the Olympus claims. That royalty can be reduced to 0.25 percent through a US$7.5 million buyback.

Hercules will pay a total of C$8 million (around US$5.8 million) over three years—either in cash or shares, at its discretion—to complete the earn-in.

Hercules CEO Chris Paul said the consolidation of the Olympus belt marked a “once-in-a-lifetime opportunity” for the company’s shareholders and underscored Barrick’s confidence in the team’s exploration strategy.

“The Leviathan system hosts evidence of a rare and exceptional copper-silver enrichment event formed during a regional tectonic episode that potentially affected the entire Olympus belt,” Paul said in the company press release. “This makes it one of the most compelling new copper projects in the United States today.”

The Olympus claims are understood to contain multiple porphyry targets extending along the same trend as Leviathan. Hercules intends to apply its proprietary geological mapping and deep-penetrating geophysics to accelerate identification and testing of new drill targets across the expanded land package.

The deal continues the company’s aggressive 2025 exploration campaign at Leviathan. As of mid-July, the company had completed seven drill holes and had five more in progress, totaling over 5,500 meters of drilling so far this season.

Initial results have continued to validate a new 3D geological model announced in April, prompting the company to increase its drill rig count from three to five.

The consolidation also comes during a paradigm shift in US federal policy toward domestic mining. Streamlined permitting processes and efforts to secure critical mineral supply chains have bolstered interest in American copper projects, which are increasingly seen as strategically vital.

In that context, the company says that the Hercules project is well-positioned to deliver long-term value given declining reserves, rising prices, and possible trade restrictions on foreign copper.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.