Colossus made a $100,000 payment to Austral Gold as an exclusivity fee. Credit: Dominik Vanyi on Unsplash.

Colossus Resources has agreed to acquire an undivided 100% stake in the Calvario and Mirador copper projects in Chile.

The related definitive option agreement has been signed with Austral Gold and its subsidiaries Minera Mena Chile and Revelo Resources.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Under the deal, Colossus will acquire the copper project in exchange for a $2.5m work commitment over a period of two years and the issuance of Colossus shares equivalent to a 19.99% shareholding in Colossus on a non-diluted basis.

Furthermore, Colossus will issue one million Colossus warrants, each at an exercise price of C$0.50 ($0.03).

Subject to the completion of a pre-feasibility study on the copper projects, Colossus will issue a further two million common shares to Austral.

See Also:

Furthermore, Colossus will grant an anti-dilution right to Austral through a $3.8m fundraiser.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Upon signing the letter of intent earlier this year, Colossus made a $100,000 payment to Austral Gold as an exclusivity fee.

Colossus technical director Ioannis (Yannis) Tsitos said: “With this acquisition, Colossus Resources secures a significant and strategic mineral rights position in one of the most prospective belts, still underexplored, of central-northern Chile associated with significant copper and precious metals mineralisation.

“Although Calvario is a drill-stage ready exploration project based on historical data, both projects have not seen any exploration activities in the last decade. Nevertheless, they exhibit important technical facts on the presence of large hydrothermal alteration systems in addition to on-surface and near-surface copper mineralisation, possibly associated with untested hypogene parts of fertile porphyry systems.”

Following the completion of the deal, Austral will become Colossus’ largest shareholder.

The early-stage copper exploration projects Calvario and Mirador are located in central-northern Chile, 700km from the Guanaco-Amancaya mine complex owned by Austral.