The new company, Leviathan Gold will acquire two exploration licenses, Avoca and Timor, located in Victoria, Australia
Australia-focused gold miner Fosterville South Exploration has announced plans to spin out two gold projects to new company, Leviathan Gold.
Leviathan Gold will acquire two exploration licenses, Avoca and Timor, located in Victoria, Australia from Fosterville South Exploration.
Following the spinoff, Leviathan will undertake an equity financing of at least C$5m ($3.6m) to fund the exploration, advancement and development of the two projects.
As per the spin-out transaction, each of the Fosterville South shareholders will receive one share of Leviathan for every share held.
Fosterville South CEO Bryan Slusarchuk said: “While this modern day gold-rush is warranted, we feel fortunate to have had a multi-year head start, with Rex Motton (our COO) having started assembling the Fosterville South land package years before the huge influx of companies we see today.
“We now have a land assembly of more than 2,700 square kilometres as a result of this early mover status in the region. Today, we announce a corporate transaction that brings Luke Norman and his team into the area.
“While we at Fosterville South concentrate on Lauriston, Golden Mountain, Providence and Walhalla, Luke’s highly experienced technical and capital markets team will run with the exceptional projects that form the basis of today’s transaction.”
Fosterville to retain ownership of all of its core properties
Fosterville, however, plans to retain ownership of all of its core properties including Lauriston, Golden Mountain, Providence and Walhalla Belt.
The spin out of granted exploration licenses is subject to Fosterville South shareholder approval, completion of a financing by Leviathan, court approval, regulatory approvals, among others.
In April 2020, Fosterville South Exploration has agreed to purchase three high-grade gold projects, including Timor Project, the Avoca Project and the Moormbool Project, from Mercator Gold Australia.