Partner-Funded VMS Exposure in the McIlvenna Bay District
About Denare West
The Denare West Project is a 21,066-hectare volcanogenic massive sulphide (VMS) exploration project located in east-central Saskatchewan, approximately 55 kilometres west-southwest of Flin Flon, Manitoba.
The project lies along the same prospective geological trend as the McIlvenna Bay and Hanson Lake VMS deposits and is located approximately nine kilometres southeast of McIlvenna Bay.
Denare West is subject to a staged option agreement with Foran Mining, now a wholly owned subsidiary of Eldorado Gold, that provides for up to $6 million in exploration expenditures, a $10 million final purchase payment, and a 2% net smelter returns royalty to Purepoint if the option is fully exercised.
Why DENARE WEST Matters
1. Strategic location within the prolific Flin Flon-Hanson Lake VMS district
2. Approximately 9 km from McIlvenna Bay
3. Prospective geological trend associated with established VMS mineralization
4. Multiple electromagnetic and geophysical targets
5. Up to $6 million in partner-funded exploration
6. Potential $10 million final purchase payment plus a 2% NSR
7. Exposure to copper, zinc, gold and silver without drawing on Purepoint's uranium exploration capital
GEOLOGICAL SETTING
Geophysical work indicates that the favourable geological package associated with the broader Hanson Lake–McIlvenna Bay trend extends onto the Denare West property.
Airborne gravity, electromagnetic surveying and historical exploration data are being integrated to identify and refine targets prospective for VMS-style copper-zinc-gold-silver mineralization.
OPTION AGREEMENT
Purepoint entered into an option agreement with a wholly owned subsidiary of Foran Mining Corporation in November 2023. Following Eldorado Gold’s acquisition of Foran in April 2026, Foran became a wholly owned subsidiary of Eldorado.
FIRST EARN-IN - 51% INTEREST
The option holder may acquire an initial 51% beneficial interest in Denare West by incurring $3 million in qualifying exploration expenditures over a period of up to four years from the effective date of the agreement.
SECOND EARN-IN - ADDITIONAL 29% INTEREST
Following completion of the first earn-in, the option holder may increase its interest to 80% by funding an additional $3 million in exploration expenditures over a further two-year period.
FINAL PURCHASE OPTION - REMAINING 20%
Following completion of the second earn-in, the option holder may acquire Purepoint’s remaining 20% interest by:
i) paying Purepoint $10 million; and
ii) granting Purepoint a 2% net smelter returns royalty (NSR).
The agreement also provides the option holder with staged rights to repurchase portions of the NSR under specified terms.
If the final purchase option is not exercised following completion of the earn-in stages, Purepoint and the option holder would form a joint venture, with the option holder funding operations through completion of a pre-feasibility study.
EXPLORATION POTENTIAL
Denare West provides Purepoint with exposure to a proven VMS district through a structure designed to advance the project while preserving capital for its core Athabasca Basin uranium portfolio.
The combination of district-scale geology, partner-funded exploration and meaningful retained economic participation gives Denare West strategic value beyond a conventional exploration property.
