The TSX Venture Exchange has accepted for filing documentation pertaining to a mineral lease and option agreement dated Sept. 21, 2023, between Anglo-Bomarc U.S. Inc., a wholly owned subsidiary of Hercules Silver Corp., and an arm's-length party, Merrill Palmer (the vendor). Pursuant to the agreement, the company will have the option to acquire a 100-per-cent interest in 87 unpatented lode mining claims within the mineral mining district. The property is a mining claim property located on Bureau of Land Management administered lands, 14 miles southwest of the company's flagship Hercules property in Washington county in Idaho.

Pursuant to the terms and subject to the conditions of the agreement, the company shall pay an aggregate purchase price of $1,160,000 (U.S.) to be satisfied through the following: (i) the payment of $630,000 (U.S.) cash over a period of seven years in amounts set forth in the agreement; and (ii) the issuance of 3,152,000 common shares at a deemed price of 23 Canadian cents over a period of seven years in amounts set forth in the agreement.

At any time prior to the eighth anniversary of the agreement, the company has the right to purchase the property for an aggregate of $3-million (U.S.) to be satisfied through the following: (i) the payment of $1.5-million (U.S.) cash on closing; and (ii) the issuance of 8,918,000 common shares at a deemed price of 23 Canadian cents.

At the conclusion of the eight-year term, if the company elects not to purchase the property pursuant to the option, the company shall retain the rights to continue to lease the property by providing the vendor with: (i) annual lease payments of $160,000 (U.S.) payable in cash; and (ii) and a 2-per-cent net smelter return (NSR) royalty. In the event that the company pays an aggregate total of $2-million (U.S.) in royalties, the company may reduce the royalty rate to a 1-per-cent NSR royalty upon a one-time lump-sum payment of $1-million (U.S.) to the vendor.

For further details, please refer to the company's news releases dated Oct. 2, 2023, and Nov. 1, 2023