Explorer Lands 'Transformational' Gold Project in Nevada's Walker Lane

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1. Disclosure for the quote from the John Newell article published on August 11, 2025

1. For the quoted article (published on August 11, 2025), StrikePoint paid Street Smart, an affiliate of Streetwise Reports, US$2,000.
2. Author Certification and Compensation: [John Newell of John Newell and Associates] was retained and compensated as an independent contractor by Street Smart for writing this article. Mr. Newell holds a Chartered Investment Management (CIM) designation (2015) and a  U.S. Portfolio Manager designation (2015). The recommendations and opinions expressed in this content reflect the personal, independent, and objective views of the author regarding any and all of the companies discussed. No part of the compensation received by the author was, is, or will be directly or indirectly tied to the specific recommendations or views expressed.

John Newell Disclaimer

As always it is important to note that investing in precious metals like silver carries risks, and market conditions can change violently with shock and awe tactics, that we have seen over the past 20 years. Before making any investment decisions, it's advisable consult with a financial advisor if needed. Also the practice of conducting thorough research and to consider your investment goals and risk tolerance.

2. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

StrikePoint Gold Inc. (SKP:TSX.V; STKXF:OTCQB) has entered into a definitive purchase agreement to acquire the Northumberland Gold Project in Nevada's Walker Lane from subsidiaries of Newmont Corp. (NEM:NYSE; NGT:TSX; NEM:ASX) for US$70 million in cash up front, according to an August 18 release.

The deal also carries two contingent payments of US$25 million each — the first due within 120 days of completing a feasibility study, the second within 120 days of Northumberland reaching specified commercial-production milestones.

Northumberland is a substantial past-producing gold deposit sitting largely on private land in Nevada, a leading mining jurisdiction with an established regulatory framework, the release said. An independent mineral resource estimate (MRE) outlines 2.86 million ounces (Moz) of gold equivalent (AuEq) indicated and 1.57 Moz AuEq inferred, contained within 67 million and 31 million tonnes, respectively.

"Acquiring Northumberland is a transformational step for StrikePoint," President and Chief Executive Officer Michael G. Allen said. "We will be focused on unlocking the potential of Northumberland going forward and advancing exploration and development activities at Northumberland. In addition to the known initial MRE outlined herein, the acquired land package has potential for additional mineral resources based on identified exploration targets. There are 'near pit' and 'in pit' opportunities for resource expansion as well as the regional targets to be tested."

StrikePoint said the project's brownfields setting on private property could streamline permitting, since the current resource lies within a previously open-pit-mined area. It also sees exploration upside, as Northumberland hasn't been explored since about 2010; untested targets include extensions of known mineralization, near-pit and in-pit opportunities, and broader regional targets. Five drill permits are already in place and are expected to support efficient exploration on both private and public ground after closing, subject to permit transfer or replacement requirements.

Co. Welcomes Incoming Chairman

As part of the transaction, Alan Pangbourne will become StrikePoint's chairman upon closing, while current Chairman Shawn Khunkhun remains on the board, the release said. Pangbourne brings more than 35 years of international mining experience and most recently was president and CEO of Guyana Goldfields Inc. (GUY:TSX) before its 2020 sale to Zijin Mining Group Co. Ltd. His earlier roles include COO of SSR Mining Inc., vice president projects South America at Kinross Gold Corp., and senior posts at BHP Billiton Ltd. — president and COO of Nickel Americas, projects director for its Uranium Division, and project manager for the Spence copper project in Chile. He also ran an engineering firm specializing in gold heap-leach and carbon-in-pulp plants and is a non-executive director of OceanaGold, where he chairs the technical committee, StrikePoint said.

"Since joining StrikePoint as an advisor, I have worked closely with management to evaluate targets for acquisition," Pangbourne said. "After a thorough review of the Northumberland Gold Project, I'm excited by the opportunity that the project represents. The mineral resources already identified in Nevada give us a significant platform to build from, and we will be working hard to advance the Project on multiple fronts."

Outgoing Executive Chairman and continuing director Shawn Khunkhun said, "The acquisition of the Northumberland Gold Project places StrikePoint as an exciting explorer/developer in Nevada. The skills that Alan brings to the board of directors of the company will be valuable as the company continues to advance its projects. I look forward to working with him and management on the opportunity that Northumberland represents as a director of StrikePoint."

Details of Initial MRE

According to the company, SLR Consulting prepared the initial MRE for StrikePoint, effective July 31, drawing on 1,511 reverse-circulation and 37 core holes drilled by previous operators; StrikePoint has done no drilling or exploration at Northumberland to date.

The indicated resource comprises 67.008 million tonnes grading 1.26 grams per tonne (g/t) gold and 5.38 g/t silver, containing 2.709 Moz gold and 11.599 Moz silver — 2.857 Moz AuEq at 1.33 g/t AuEq combined. The inferred resource totals 30.967 million tonnes at 1.53 g/t gold and 4.28 g/t silver, containing 1.519 Moz gold and 4.260 Moz silver, or 1.568 Moz AuEq at 1.58 g/t AuEq. The company noted the estimate incorporates updated metal-price, cost and technical assumptions and shouldn't be compared directly with historical estimates.

SLR set recoveries by material type and preg-robbing characteristics: oxide at 75% for both gold and silver; fresh, low-preg-robbing material at 90% gold and 70% silver; medium-grade at 80% and 60%; and high-preg-robbing at 60% gold and 40% silver. The resource was constrained within an optimized pit shell using a long-term gold price of US$3,500 per ounce and silver of US$55 per ounce.

Cutoffs vary by material type, from 0.16 g/t AuEq for oxide to 0.31 g/t for fresh low-preg-robbing, 0.35 g/t for medium and 0.47 g/t for high-preg-robbing material. The pit optimization also assumes 45-degree overall slopes, mining costs of US$2.12 per tonne mined, G&A of US$1.35 per tonne milled, processing costs of US$12 per tonne (oxide) and US$30 per tonne (sulphide), and an in-situ bulk density of 2.6 tonnes per cubic meter.

StrikePoint stressed the resource is not a mineral reserve and has no demonstrated economic viability, with no reserves currently defined at Northumberland. The inferred portion needs further work before it could be classified as indicated, though continued exploration could support an upgrade. The deposit remains open in several directions, and additional targets across the property could expand the resource.

The company has filed the supporting "NI 43-101 Technical Report Northumberland Gold Project, Nevada, USA" on SEDAR+ and posted it to its website.

Initial Discovery Traced Back to Late 1800s

The project sits about 150 kilometers by road from Tonopah, Nevada, reached by paved highway and an all-weather county road, StrikePoint said. Northumberland lies within the Walker Lane, a prolific Nevada mining district that includes Kinross's Round Mountain Mine about 60 kilometers to the south. The deposit is considered Carlin-style, though the company cautioned that references to nearby operations are for context only and don't imply comparable economics, resources or production.

Northumberland traces to an initial discovery in the late 1800s, with significant oxide mineralization identified in the 1930s, the release said. Various operators mined it intermittently through 1991 before ownership passed through Nevada Western Gold, New West Gold and Fronteer Gold, with Newmont acquiring Fronteer and Northumberland in 2011.

Under the arm's-length agreement with Newmont, wholly owned subsidiary Nu Gold LLC will acquire specified claims, fee lands, licenses, permits and equipment through a series of corporate entities. StrikePoint will pay US$70 million in cash at closing, then US$25 million within 120 days of completing a feasibility study and another US$25 million within 120 days of hitting specified commercial-production milestones.

Expert: Co. Is a 'Rare Combination'

¹John Newell of John Newell and Associates reviewed the stock before the purchase on August 11, 2025, describing StrikePoint Gold as a potentially overlooked opportunity among gold exploration companies operating in Nevada's Walker Lane district.

Newell highlighted the company's 2024 acquisition of the Hercules project at a price significantly below its previous US$25 million sale value.

Newell said the Hercules project is fully permitted for exploration drilling and hosts a large oxide gold system that StrikePoint is advancing toward a maiden mineral resource estimate. Despite that progress, he said investors have not yet fully reflected the project's potential in the company's valuation. "And the market hasn't caught on," he commented, adding the word "Yet." to suggest he expects broader market recognition in the future.

He described StrikePoint as having "a rare combination: deep-value optionality, a fully permitted oxide gold asset in one of the world's best mining jurisdictions, a proven technical and capital markets team, and a meaningful exploration target on a district-scale land package."

Newell also pointed to StrikePoint's streamlined share structure and ongoing drilling programs as additional strengths. He said those factors, together with anticipated exploration news, could help strengthen the company's market profile going forward.

 StrikePoint also owns the Hercules and Cuprite gold projects in Nevada, with Northumberland set to become its flagship asset if the acquisition closes, according to a report by France Pinzon for Mining.com.au on August 19.

"The transaction is expected to close around the end of September, with trading in StrikePoint shares expected to remain halted until completion," Pinzon said.

The Catalyst: Gold Surges After Treasury Announcement

According to a report on Investing.com by Scott Kanowsky updated on August 19, gold prices surged on Wednesday as a sharp decline in U.S. Treasury yields boosted demand for the non-yielding metal after the Treasury Department announced plans to at least double its purchases of longer-dated government debt.

At 9:25 a.m. ET, spot gold had climbed 2.9% to US$4,458.43 an ounce, while gold futures advanced 2.2% to US$4,517.20 an ounce.

The Treasury said its expanded buyback program was not intended to "mitigate episodes of acute market stress," although such purchases have previously been used to improve liquidity in the government bond market, the report noted. The announcement came a day after gold prices declined as the yield on 30-year U.S. Treasuries briefly touched its highest level in nearly two decades, while 10-year yields remained near their strongest levels since early 2025.

Rising bond yields can weigh on gold because higher fixed income returns make interest-bearing assets more appealing relative to bullion, which generates no interest, Kanowsky said. Falling yields therefore reduce the opportunity cost of holding gold and can encourage investors to move back toward the precious metal.

Despite gold's rising value pushing allocations higher, the World Gold Council (WGC) said current exposure remains insufficient, according to Ernest Hoffman of Kitco News on August 18.

Jeremy De Pessemier, asset allocation strategist at the WGC, also argued that broad commodity indexes are not the most effective way for strategic investors to gain gold exposure because they create roll costs that can be avoided through physical holdings.

De Pessemier characterized gold as "a multi-faceted asset that enjoys diverse supply and demand dynamics."

He said gold serves both as a long-term investment for preserving and growing wealth and as a consumer product through jewelry and technology demand. "Gold is, on the one hand, often used as an investment to protect and enhance wealth over the long term, but on the other hand it is also a consumer good, via jewelry and technology demand," he wrote, according to Hoffman. "This demand structure sets gold apart and makes it less sensitive to the business cycle. Indeed, during periods of economic uncertainty it is the counter-cyclical investment demand that drives up the gold price. During periods of economic expansion pro-cyclical consumer demand supports performance."

Financing Set to Shift Register Toward Institutions

To fund the acquisition, StrikePoint said it has arranged a bought-deal private placement of CA$140 million led by Canaccord Genuity Corp. — 70 million subscription receipts at CA$2.00 each — with an underwriter's option for up to an additional CA$21 million. The company also plans a non-brokered private placement of up to CA$2 million in units (each unit comprising one share and half a warrant exercisable at CA$3.00 post-consolidation for three years). Net proceeds would cover the US$70 million cash payment to Newmont, advance exploration and development at Northumberland, and fund general corporate purposes.

Ahead of closing, and subject to TSX Venture Exchange approval, StrikePoint intends to consolidate its shares on a 10-to-1 basis — 10 existing shares for one new share. Each subscription receipt would then convert into one post-consolidation share once the escrow-release conditions tied to the acquisition are satisfied. Certain directors, officers and insiders are expected to participate in the financings, the release said.

Separately, StrikePoint has taken a CA$500,000 non-interest-bearing loan from certain lenders, including insiders, to cover claim-maintenance fees at its Hercules and Cuprite projects, to be repaid from the non-brokered placement.

Given the scale of the raise, the company said it expects its shareholder base to shift markedly — from a structure that is today largely retail to one that is largely institutional once the financing closes.

The acquisition is a "Fundamental Acquisition" under TSXV Policy 5.3 and does not require shareholder approval. StrikePoint's shares are expected to remain halted until the transaction closes, anticipated around the end of September.

Ownership and Share Structure²

Before the financing — which the company expects to substantially reshape its ownership — just over 1% is held by insiders and management, and Mining financier Eric Sprott owns about 5% through his company, 2176423 Ontario Ltd. Pathfinder Asset Management Ltd. owns 4.8%.

The company has 62.39 million shares in circulation and a market capitalization of CA$10.31 million. It trades within a 52-week range of CA$0.08 to CA$0.34.

Common Investor Questions

What did StrikePoint announce? On August 18, 2026, StrikePoint entered a definitive agreement to acquire the Northumberland Gold Project in Nevada's Walker Lane from subsidiaries of Newmont Corp. Wholly owned subsidiary Nu Gold LLC will acquire the claims, fee lands, licenses, permits and equipment in an arm's-length transaction.

What are the terms? US$70 million in cash at closing, plus two contingent payments of US$25 million each — the first within 120 days of completing a feasibility study, the second within 120 days of reaching specified commercial-production milestones. That's up to US$120 million total.

Why is it significant for StrikePoint? CEO Michael G. Allen called it a "transformational step." Northumberland would become StrikePoint's flagship, alongside its existing Hercules and Cuprite projects in Nevada.

What does the mineral resource estimate show? An independent MRE by SLR Consulting (effective July 31) outlines 2.86 Moz of gold-equivalent indicated (67.0 Mt at 1.33 g/t AuEq) and 1.57 Moz AuEq inferred (31.0 Mt at 1.58 g/t AuEq). On a metal basis, the indicated category holds 2.709 Moz gold and 11.599 Moz silver; the inferred holds 1.519 Moz gold and 4.260 Moz silver.

What assumptions underpin it? The AuEq calculation and pit constraint use a long-term gold price of US$3,500/oz and silver of US$55/oz, with recoveries set by material type (oxide 75% Au/Ag; fresh low-preg-robbing 90% Au/70% Ag, down to 60% Au/40% Ag for high-preg-robbing material). Cutoffs range from 0.16 to 0.47 g/t AuEq by material type. The estimate uses updated assumptions and shouldn't be compared directly with historical estimates.

What's the exploration upside? Northumberland hasn't been explored since about 2010. Untested targets include extensions of known mineralization, near-pit and in-pit opportunities, and broader regional targets. Five drill permits are already in place, and the brownfields setting on private ground could streamline permitting.

Where is Northumberland? About 150 km by road from Tonopah, Nevada, in the Walker Lane — near Kinross's Round Mountain Mine (~60 km south). The Carlin-style deposit was first discovered in the late 1800s, with oxide mineralization identified in the 1930s, and was mined intermittently through 1991. Newmont acquired it via Fronteer Gold in 2011.