Canadian exploration company Hercules Metals has entered a strategic agreement with Barrick Gold to consolidate control of a 73-km copper belt surrounding its flagship Leviathan discovery in Idaho.

The deal, announced on Monday, gives Hercules the option to acquire the “Olympus” claims – more than 29 950 ha of unpatented mining ground – from Barrick’s US subsidiary in exchange for staged payments totalling C$8-million over three years.

Hercules may make the payments in either cash or stock, subject to regulatory approval and limitations on Barrick’s ownership stake, which cannot exceed 19.9%.

If fully exercised, the transaction would grow Hercules’ total land package to over 40 470 ha, establishing it as the dominant claim holder in what it calls “America’s newest porphyry copper district".

“Consolidating the 73-km Olympus copper belt represents a once-in-a-lifetime opportunity for Hercules shareholders and signifies a strong endorsement of our team’s execution and vision,” CEO Chris Paul said in a statement. “We are honoured by Barrick’s confidence as we advance Leviathan alongside a greatly expanded district-scale exploration strategy moving forward.”

Paul added that the Leviathan system hosts “evidence of a rare and exceptional copper-silver enrichment event” likely tied to regional tectonic activity across the Olympus belt, calling it “one of the largest and most compelling new copper projects in the United States today.”

Under the agreement, Hercules will also grant Barrick a 1% net smelter return royalty on the Olympus claims, 0.75% of which can be repurchased for $7.5-million. The company retains the right to accelerate the option at any time.

Paul said the transaction comes amid sweeping changes to the US mining landscape, including streamlined permitting processes and a proposed 50% tariff on foreign copper imports. “The impacts of this, alongside rising prices and declining reserves in the US, positions Hercules to deliver exceptional value for our shareholders moving forward,” he said.