- AIS Resources (AIS) has been granted an option to acquire the Kingston Gold Project in north-western Victoria, Australia
- As consideration, the company will pay to ConnorCoote Mining, a joint venture which holds the project, a total of roughly C$193,000 as well as four million common shares and purchase warrants
- ConnorCoote will also retain a one per cent net smelter royalty on the project, capped at 50,000 ounces of gold
- The deal follows a similar agreement announced on August 24, under which AIS would acquire the Toolleen-Fosterville gold project, also in Victoria
- AIS Resources (AIS) is currently up 5.88 per cent and is trading at nine cents per share
AIS Resources (AIS) has been granted an option to acquire the Kingston Gold Project in north-western Victoria, Australia.
Under the terms of the agreement, AIS and ConnorCoote Mining, a joint venture between Owen Coote and Glenn Connor, have agreed to “use their best endeavours” to design and execute a sale and purchase deal by November 16, 2020.
Such an agreement would pertain to AIS Resources’ acquisition of the Kingston Gold Project, which is located near the town of Navarre and covers 167 square kilometres.
However, Prospecting License PL007020, which covers a five-hectare portion of the property, will be excluded and used for ConnorCoote’s own mining activities, subject to a 15 per cent revenue cut in favour of AIS.
In addition to a non-refundable payment of approximately C$34,000, AIS will pay roughly $193,000 in cash for the acquisition and issue 4 million common shares and 4 million purchase warrants to ConnorCoote.
These warrants will be entitle the holders to acquire an additional common share in AIS at a price of $0.15, exercisable over a period of five years.
ConnorCoote will also retain a one per cent net smelter royalty on the Kingston Gold Project, which will be capped at a total of 50,000 ounces of gold.
The deal follows a similar agreement signed on August 24, under which AIS would acquire the Toolleen-Fosterville gold project, also located in Victoria, from Providence Gold and Minerals.
According to the agreement, AIS will pay to Providence a total of $356,250 in cash along with $356,250 in shares. Providence will also retain a one per cent net smelter return royalty on the Toolleen-Fosterville project.
AIS Resources (AIS) is currently up 5.88 per cent and is trafing at nine cents per share at 1:35pm EDT.