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.”