- AIS Resources (AIS) has signed a binding letter of intent with Providence Gold and Minerals to acquire the Toolleen-Fosterville gold project in Australia
- The company will pay a total of C$356,250 in cash and issue $356,250 in shares to Providence for the acquisition
- Providence will also retain a one per cent net smelter return royalty on the Toolleen-Fosterville project
- Rodney Boucher, a geologist at Providence Gold and Minerals, will assist in the transaction and with future work at the project
- AIS Resources (AIS) is currently up 77.78 per cent and is trading at eight cents per share
AIS Resources (AIS) has signed a binding letter of intent with Providence Gold and Minerals to acquire the Toolleen-Fosterville gold project in Australia.
Located three kilometres from the township of Toolleen in Victoria and 12 kilometres from Kirkland Lake’s Fosterville gold mine, the project sits on freehold land and has no native title claim.
Under the terms of the agreement, the Vancouver-based company will pay to Providence a total of C$356,250 in cash and issue $356,250 in shares. Providence will also retain a one per cent net smelter return royalty of the project.
Phillip Thomas, President and CEO of AIS Resources, said the company is fortunate to have the opportunity to acquire a property with an open cut mine, free gold on the surface and substantial geological work already completed.
“The Project area, which is adjacent to the recently lifted exploration moratorium area, is located within the Bendigo-Ballarat Zone of the Palaeozoic Lachlan Fold Belt of eastern Australia and the greenstone corridor running north-south.
“The experience at Fosterville and Bendigo suggests that the shallow gold mineralisation may be indicative of high-grade shoots that can be mined by underground methods,” he added.
Rodney Boucher, a geologist at Providence Gold and Minerals with more than 25 years of experience on the region, will assist in the transaction as well as future work at the project.
AIS Resources is currently in the process of finalising a definitive agreement for the acquisition, which remains subject to approval from the TSX Venture Exchange.
AIS Resources (AIS) is currently up 77.78 per cent and is trading at eight cents per share at 11:29am EDT.