West Point Gold Completes Baxter Spring Project Acquisition, Shares Advance

West Point Gold Finalizes Baxter Spring Project Acquisition

West Point Gold Corp. (TSXV: WPG, OTCQB: WPGCF) announced on October 3, 2025, the completion of its acquisition of a 100% interest in Baxter Gold Corp. and its Baxter Spring Project. This strategic move positions West Point Gold to expand its presence in Nevada's prolific Manhattan Mining District, a region known for significant gold mineralization. Following the announcement, investor confidence was evident as West Point Gold's shares (WPGCF) advanced by 8.06%, and its TSX Venture Exchange listing (WPG.V) rose by 7.87%.

Acquisition Mechanics and Project Overview

The acquisition involved the issuance of 13,500,000 common shares of West Point Gold to the shareholders of Baxter Gold Corp., each valued at $0.435. This constitutes an approximate total equity consideration of $5.8725 million. The newly issued common shares are subject to a statutory hold period until February 3, 2026. Furthermore, contractual hold periods will restrict the free tradability of these shares, with 25% becoming tradable on April 2, 2026, another 25% on October 2, 2026, a subsequent 25% on April 2, 2027, and the final 25% on October 2, 2027.

The Baxter Spring Project is strategically located in the Manhattan Mining District of Nevada, approximately 40 kilometers south of Kinross's Round Mountain Mine and West Point Gold's existing Jefferson Canyon project. The project boasts an extensive historical exploration database, including 128 drill holes, approximately 11,000 meters of reverse circulation (RC) drilling, and 1,850 meters of core drilling. Notably, historical drilling has yielded impressive results, such as 12.2 meters at 60.3 grams per tonne (g/t) gold, including 3.0 meters at 240 g/t gold.

Market Reaction and Valuation Context

The market's bullish response to the acquisition reflects a positive outlook on West Point Gold's expanded portfolio and the high-grade potential of the Baxter Spring Project. Analysts point to a "valuation dislocation," where the implied resource value of Baxter Spring is estimated at approximately $190 million based on historical data and current gold prices. This figure significantly contrasts with West Point Gold's market capitalization of C$39.12 million (as of October 3, 2025) and its cash reserves of $6.62 million. This suggests that the company may have secured a valuable asset at a relatively low cost.

Quentin Mai, CEO of West Point Gold, emphasized the economic advantage of the deal, stating:

"We believe the replacement cost of the work completed to date far exceeds the value of the shares West Point Gold is paying to acquire the project."

This sentiment underscores the potential for substantial value creation if future exploration confirms historical data.

Broader Implications and Future Outlook

This acquisition places West Point Gold squarely within what is being termed "Nevada's exploration renaissance," capitalizing on renewed interest in the region's gold potential. While West Point Gold (formerly Gold79 Mines Ltd.) has reported periods of negative revenue and cash flow, the promising historical drill results from Baxter Spring offer a pathway for future growth and a potential re-rating for the company. The company plans to undertake comprehensive exploration activities in Q4 2025, including compiling historical data and 3D modeling, to prepare for a planned 5,000-meter drilling program in 2026. This program aims to expand known mineralization and test deeper targets within the project.

Looking ahead, investors will be closely monitoring the results of the upcoming drilling program at Baxter Spring, as confirmation of the historical high-grade gold intercepts will be crucial for validating the project's perceived value. Additionally, the structured release of West Point Gold shares held by Baxter Gold Corp. shareholders over the next two years will be a factor to watch, as these shares become freely tradable and could influence market liquidity and stock performance.