Lodestar Metals Secures Option on Highly Prospective Gold Run Property in Nevada's Getchell Trend

Rhea-AI Summary

Lodestar Metals Corp. (TSXV: LSTR) (OTCQB: SVTNF) has announced a property option agreement to acquire a 100% interest in the Gold Run Property in Humboldt County, Nevada. The agreement, dated May 6, 2025, was made with William Matlack and Don McDowell, subject to an existing royalty. The acquisition is classified as a "Fundamental Acquisition" under TSX Venture Exchange policies, resulting in a temporary trading halt pending required documentation. The Gold Run Property, situated in Nevada's Getchell Trend, represents Lodestar's strategic entry into Nevada's mining sector, with management expressing optimism about the project's exploration potential and its role as a potential cornerstone asset.

Positive

• Strategic expansion into Nevada's mining-rich Getchell Trend region
• Opportunity to acquire 100% interest in the Gold Run Property
• Property located in a proven geological area with exploration potential

Negative

• None.

Vancouver, British Columbia--(Newsfile Corp. - May 7, 2025) - Lodestar Metals Corp. (TSXV: LSTR) (OTCQB: SVTNF) ("Lodestar" or the "Company"), is pleased to announce it has entered into a property option agreement dated May 6, 2025 (the "Option Agreement") with William Matlack and Don McDowell (collectively, the "Option") to acquire a 100% interest in the Gold Run Property, located in Humboldt County, Nevada, subject to an existing royalty.

The transaction constitutes a "Fundamental Acquisition" pursuant to the policies of the TSX Venture Exchange. Accordingly, the Company's shares will be halted by the TSX Venture Exchange and remain halted until receipt of the required documents under TSX Venture Exchange Policy 5.3.

Lowell Kamin, President and CEO of Lodestar commented, "This marks an important milestone for Lodestar as we kick off our Nevada strategy. Gold Run provides immediate exploration upside and a platform for long-term value creation."

Technical Director Leo Horn added, "The Gold Run acquisition is an exciting step for Lodestar. This region has proven geological potential, and we believe the project could quickly become a cornerstone asset in our portfolio."

About the Gold Run Property

The Gold Run Property comprises 75 unpatented mining claims, which total approximately 516 hectares, located in Humboldt County, Nevada, United States. The property consists of two non-contiguous claim blocks.

Situated within the renowned Getchell Gold Trend and near its intersection with the Battle Mountain-Eureka Trend, Gold Run is in a district with a long history of mining and exploration activity dating back to the 1860s. Since the 1960s, 15 different operators have completed 131 drill holes (totaling 17,823 metres / 58,476 feet), alongside the collection of 454 soil samples and 827 rock samples.

Figure 1. Gold Run Property Location

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3029/251220_d3206fd6b4cfe86b_001full.jpg

Notably, a 2008 diamond drilling program by Golden Predator Mining Corp. returned strong gold assay results, which have been reviewed and validated by the current operator using original assay certificates from ALS Chemex. Highlights include:

• Hole GPA004¹ - 120 ft. - 125 ft. @ 11.2 g/t Au, 20 g/t Ag
• Hole GPA011¹ - 180 ft. - 190 ft. @ 6.1 g/t Au, 12 g/t Ag
• Hole GPA027² - 80 ft.-110 ft @ 27.41 g/t, 83 g/t Ag
  • including 80 ft. - 95 ft. @53.31 g/t Au, 143 g/t Ag

Exploration efforts will focus on identifying epithermal-style gold mineralization, with additional potential for Carlin-type mineralization given the property's strategic location. There is also potential for skarn or porphyry-style systems associated with nearby intrusive bodies.

Terms of the Transaction

Under the terms of the Option Agreement, the Company has an option to acquire a 100% interest in the Gold Run Property by making cash payments totalling US $450,000 to the Optionor as follows: (i) US $50,000 on the date of TSX Venture Exchange Acceptance; (ii) US $50,000 on the first anniversary of the Option Agreement; (iii) US $50,000 on the second anniversary of the Option Agreement, (iv) US $75,000 on the third anniversary of the Option Agreement; (v) US $75,000 on the fourth anniversary of the Option Agreement; (vi) US $75,000 on the fifth anniversary of the Option Agreement; and (vii) US $75,000 on the sixth anniversary of the Option Agreement. The Company has agreed to reimburse the Optionor for certain annual filing fees paid by them in the amount of US $17,500.

The Company has also agreed to make certain milestone payments to the Optionor as follows: (i) US $500,000 within sixty days of completion of a preliminary economic assessment on the Gold Run Property, (ii) US $1,000,000 within sixty days of completion of a pre-feasibility study on the Gold Run Property; and (iii) US $1,000,000 with the earlier of sixty days of completion of a feasibility study and the Company obtaining sufficient financing to construct a mine on the Gold Run Property.

The Company has also agreed to grant a 2% net smelter return royalty on all minerals mined, produced or otherwise recovered from the Gold Run Property (the "NSR"), subject to a buyback of one-quarter of the NSR for US $750,000, in favour of the Optionor.

The Gold Run Property is subject to the terms of a mineral lease agreement with the Gomes Family Trust (the "Gomes Agreement"). Under the terms of the Gomes Agreement, an annual advance royalty payment of US $25,000 is payable to the Gomes Family Trust. The Gomes Family Trust also retain a 2% net smelter return royalty on certain claims of the Gold Run Property and a 1.5% net smelter return royalty on other claims of the Gold Run Property. The total royalties payable, including any advance royalty payments, under the Gomes Agreement is limited to US $4,000,000.

The Optionor is arm's length to the Company. There is no finder's fee payable under the transaction.

The transaction is subject to acceptance by the TSX Venture Exchange.

Figure 2: Historical drill hole with drill trace intercepts from the previous operators.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3029/251220_d3206fd6b4cfe86b_002full.jpg

Qualified Person

Ty Magee, P. Geo., a Qualified Person, as defined by NI 43-101, and a consultant to the Company, has reviewed and approved the scientific and technical information contained in this news release.

About Lodestar Metals Corp.

Lodestar Metals Corp. is a Canadian mineral exploration company advancing high-potential projects in North America. The Company's flagship assets include the Peny Property in the Snow Lake District of Manitoba and the newly optioned Gold Run Property in Nevada, situated along the prolific Getchell and Battle Mountain-Eureka Gold Trends. Lodestar's strategy focuses on high-impact exploration, strategic acquisitions, and responsible development.

Contacts

Lodestar Metals Corp.
Lowell Kamin, President, CEO & Chairman of the Board
(416) 272-1241
lowell@lodestarmetals.ca

Forward-Looking Statements

The information set forth in this news release contains forward-looking statements based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions, and expectations. They are not guarantees of future performance. Lodestar cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by several material factors, many of which are beyond Lodestar's control. Such factors include, among other things, risks and uncertainties relating to Lodestar's limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates.

NEITHER 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.

News Release References

1. Golden Predator Mining Corp. (2008, June 24). Golden Predator Intersects 11.2 grams per tonne Gold in Initial Drilling at Adelaide. Retrieved from https://scandiummining.com/news/golden-predator-intersects-11.2-grams-per-tonne-gold-in-initial-drilling-at-adelaide-1/

2. Golden Predator Mining Corp. (2008, September 15). Golden Predator Reports High-Grade Intercept of 9.1 m Grading 27.4 Grams per Tonne (30 ft of 0.8 oz/t) Gold at Adelaide Project. Retrieved from https://scandiummining.com/news/golden-predator-reports-high-grade-intercept-of-9.1-m-grading-27.4-grams-per-tonne-30-ft-of-0.8-oz-t-gold-at-adelaide-project/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/251220

FAQ

What is the significance of Lodestar Metals' Gold Run Property acquisition in Nevada?

The Gold Run Property acquisition marks Lodestar's strategic entry into Nevada's mining sector, specifically in the Getchell Trend region. It represents a potential cornerstone asset with immediate exploration upside and platform for long-term value creation.

Why was trading of SVTNF stock halted after the Gold Run Property announcement?

Trading was halted because the acquisition is classified as a 'Fundamental Acquisition' under TSX Venture Exchange policies, requiring submission and review of specific documentation before trading can resume.

What are the terms of Lodestar Metals' Gold Run Property option agreement?

Lodestar has entered into an option agreement with William Matlack and Don McDowell to acquire 100% interest in the Gold Run Property, subject to an existing royalty. Specific financial terms were not disclosed in the announcement.

Where is the Gold Run Property that Lodestar Metals acquired located?

The Gold Run Property is located in Humboldt County, Nevada, within the Getchell Trend region.