Option to be granted to Colossus Resources Corp. ("Colossus") (TSXV: CLUS) to purchase Austral's Chilean Calvario and Mirador copper projects, previously acquired through the takeover of Revelo Resources Corp in 2021.
Consideration comprised mainly of (i) a US$2.5 million work commitment over a two-year period, (ii) 19.99% shareholding in Colossus (non-diluted basis), (iii) one million Colossus warrants at an exercise price of C$0.50 and anti-dilution rights up to Colossus raising US$3.8 million.
Additional payment of two million Colossus common shares if Colossus prepares a pre-feasibility study.
Colossus to complete an equity financing for proceeds of not less than US$1.5M within 90 days after the date of the Agreement and any required regulatory approval.
Austral would become the largest shareholder of Colossus.
Vancouver, British Columbia--(Newsfile Corp. - November 16, 2023) - Established gold producer Austral Gold Limited (ASX: AGD) (TSXV: AGLD) (OTCQB: AGLDF) ("Austral" or the "Company") and Colossus Resources ("Colossus") (TSXV: CLUS) signed a definitive agreement ("Agreement") to grant Colossus an option to purchase Austral's Chilean Calvario and Mirador copper projects (collectively, the "Projects"). The Agreement follows the initial media release on 5 April 2023, which provided exclusivity to Colossus through a Letter of Intent ("LOI") and the payment of US$100,000. see & read more on