Leviathan Metals (TSX-V:LVX) has announced that its wholly owned subsidiary, Leviathan Gold (Australia) has entered into a mineral property sale agreement to sell the Timor Gold Project to Au Gold Corp (TSX-V:AUGC).
Under the terms of the agreement, Leviathan will receive a cash payment of $10,000 upon signing the mineral property sale agreement, $65,000 upon closing of the purchase and sale, and the issuance of 5 million common shares of Au Gold.
The transfer of shares will provide Leviathan with 11.16% of issued and outstanding shares of Au Gold.
The Timor Gold Project covers 116.45km2 in Central Victoria, with 25km of high-grade historic mine workings.
CEO Luke Norman says that “the disposal of Timor places this non-core asset in experienced, local hands via a tightly-held corporate structure, thereby providing upside to Au Gold’s exploration success at the property – an area of recorded historic high-grade production.”
Completion of the purchase and sale is subject to approval of the TSX Venture Exchange.
Leviathan Metals is a Canadian exploration company unlocking copper, uranium, and polymetallic deposits across global mining jurisdictions.
Write to Amy Rotman at Mining.com.au
Images: Leviathan Metals
