Colossus Resources Corp. (TSXV:CLUS) signed a letter of intent to acquire Calvario and Mirador Projects in Republic of Chile from Austral Gold Limited (ASX:AGD), Revelo Resources Corp. and Minera Mena Chile Limitada on April 5, 2023.

As per Terms of the LOI, Colossus Resources will also issue to Minera Mena Chile or its nominee, such number of common shares in the capital of Colossus (“Colossus Shares”) as to be equal to 19.9% of the post-issuance Colossus Shares outstanding, and onemillion share purchase warrants, each of which shall entitle the holder to purchase one Colossus Share for an exercise price of C$0.50 for three years. An additional (contingent) payment consisting of 2 million Colossus common shares if Colossus prepares a pre-feasibility study. Colossus Resources paid the sum of $0.1 million to Austral Gold Limited on execution of the LOI.

If a definitive option agreement is not entered into by Colossus Resources by May 30, 2023, or such later date as is agreed upon by the parties, Austral Gold Limited shall refund $0.0375 million to Colossus Resources. The Projects are subject to net smelter return royalties over base and precious metals, of which Minera Mena Chile Ltda will retain the right to purchase half the royalties. The transaction is subject to all applicable regulatory approvals, including acceptance by the TSXV, and, if required, shareholder approval.