Austral Gold Signs LOI to option its Calvario-Mirador Copper Projects to Colossus Resources
Published by Isabelle Keltie,
Editorial Assistant
Global Mining Review,
Highlights
- Letter of intent (LOI) to grant an option to Colossus Resources to purchase Austral’s Chilean Calvario and Mirador copper projects, previously acquired through the takeover of Revelo Resources Corp. in 2021.
- Up-front cash payment of US$100 000 for exclusivity.
- Option consideration is mainly comprised of (i) a US$2.5 million work commitment over a two-year period, and (ii) 19.9% shareholding in Colossus (non-diluted basis) upon signing the definitive agreement, plus one million Colossus options at an exercise price of C$0.50 and antidilution rights up to raising US$3.8 million.
- An additional (contingent) payment consisting of 2 million Colossus common shares if Colossus prepares a pre-feasibility study.
- Austral would become the largest shareholder of Colossus.
Established gold producer Austral Gold Ltd. Has signed a letter of intent (LOI) with Colossus Resources Corp. pursuant to which Austral, together with its subsidiaries Revelo Resources Corp. and Minera Mena Chile Ltda. (collectively, the “Austral Group”), proposes to grant an option to Colossus to purchase the Austral Group’s non-core Calvario and Mirador copper projects in northern Chile (collectively, the “Projects”).
The Projects are early-stage copper exploration projects located approximately 80 km northeast of the coastal city of La Serena in the Coquimbo Region of central-northern Chile in South America, approximately 700 km from the Austral Group’s Guanaco-Amancaya mine complex.
Grant of the Option is subject to conditions, including the negotiation and execution of a definitive agreement, the necessary approval of the transaction by the regulatory authorities, and certain undertakings from Colossus, including the requirement that Colossus complete an equity financing in which it raises net proceeds of at least US$1.5 million.
Austral Gold’s Chief Executive Officer, Stabro Kasaneva said: “We are focused on our core gold assets across production and exploration while seeking investment opportunities with third parties to develop our non-core projects. We expect to share the potential upside of two of our copper projects, Calvario and Mirador, through an equity interest in Colossus.”
Read the article online at: https://www.globalminingreview.com/mining/13042023/austral-gold-signs-loi-to-option-its-calvario-mirador-copper-projects-to-colossus-resources/
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