Revelo Resources Corp. is pleased to announce that it has signed definitive documentation in Chile for the sale of a 100% interest in Revelo's gold-silver projects at San Guillermo and Reprado, both located in the emerging Amancaya precious metals district of northern Chile, to Austral Gold Ltd, as previously announced (see Company's news release dated July 17, 2017).
It is anticipated that Austral, which currently owns and operates the Amancaya gold-silver mine that started producing during 2017, will expand its exploration activities into the surrounding San Guillermo and Reprado properties where potential for yet further precious metals vein discoveries exists. Austral currently transports ores mined from Amancaya to a new plant at its Guanaco mine, located approximately 70 km to the northeast.
In exchange for the sale, Revelo has received 10,000,000 common shares in Austral, valued at approximately C$1.5 Million at current market price, and has retained Net Smelter Return (NSR) Royalties on future metals production of 1% and 0.5% at Reprado and San Guillermo, respectively.
The existing Option, Sale and Royalty Agreement between Revelo and Austral relating to the San Guillermo project (See Company's news release dated February 8, 2016) has been cancelled. Austral has assumed responsibility for paying underlying NSR production royalties at San Guillermo and Reprado.