A.I.S. Resources Limited reports that it has been received an option to perform due diligence and formalize a sale and purchase contract with regard to the Kingston Gold Project located close to Navarre, in north-western Victoria, Australia.
A.I.S. Resources and the Optionor ConnorCoote Mining (vendor) have agreed to put forth their best endeavors to settle the form of and carry out a definitive sale and purchase contract on or before November 16th, 2020. This would allow the former to acquire the Optionor’s 100% interest in Exploration License 006318 that spans 67 km2 but excluding the Prospecting License (PL) PL007020 contained within the Exploration License region, a region of 5 ha.
ConnorCoote Mining is a joint venture between Glenn Connor and Owen Coote, both from Victoria in Australia. A.I.S. Resources will pay a total of AUD$35,000, which is non-repayable to the Optionors under the Option agreement.
The consideration payable by A.I.S. Resources for the Exploration License, assuming acceptable completion of due diligence and settlement of the Sale and Purchase Agreement, is AUD$260,000, 4,000,000 common shares of A.I.S. Resources, and 4,000,000 share purchase warrants that are exercisable at $0.15 over a period of five years.
As part of the agreement, the Optionor will retain a 1% NSR up to a cap of 50,000 oz of gold. it will also be allowed to perform mining activities outside of the PL007020 where the shaft began inside the PL, and a contract has been signed on a 15% revenue share.
The transaction is subject to approval by the TSX Venture Exchange.
A.I.S. Resources has granted a total of 450,000 incentive stock options to its numerous consultants in accordance with its stock option plan.
Every Option is exercisable into a single common share of A.I.S. Resources at a cost of $0.085 per Share being the closing cost of the Shares on the TSX Venture Exchange on September 17th, 2020. The Options vested on grant will expire on September 18th, 2025. The stock options awarded are subject to approval of the TSX Venture Exchange.