- Accelerate Resources (AX8) has secured the rights to purchase the Rossland Gold Project in British Columbia, Canada
- The company has signed an agreement with Currie Rose Resources to purchase the gold project
- Under the agreement, the companies will complete a due diligence and exploration program over an eight-month period
- Accelerate will fund the due diligence, which will cost C$500,000 (nearly A$520,000)
- Prior to the expiry of the due diligence, Accelerate will have an option to own 51 per cent of Rossland
- The company will have the option to purchase the remaining interest after it completes stage one of the earn-in option
- Accelerate has also received approval for a six to 12-month drilling program that will test a series of high priority targets across the project with groundwork having already commenced
- The company is currently finalising details to raise approximately $1.7 million at an issue price of five cents per share to fund the due diligence
- Company shares are in a trading halt and last traded for 5.6 cents per share on August 28
Accelerate Resources (AX8) has secured the rights to purchase the Rossland Gold Project in British Columbia, Canada.
The company has signed a binding term sheet with Canadian company Currie Rose Resources to purchase the gold project.
Rossland covers approximately 3000 hectares and hosts the same geological structure as the nearby Le Roi Mines that produced more than 2.7 million ounces of gold, 3.5 million ounces of silver and 71 tonnes of copper between 1894 and 1941.
Under the agreement, the companies will complete a due diligence and exploration program over an eight-month period.
Over this period, Accelerate will give Currie Rose C$500,000 (nearly A$520,000) to fund the due diligence exploration program.
Prior to the expiry of the due diligence, Accelerate will have an option to own 51 per cent of Rossland. If the company does not decide to earn-in on the project, Currie Rose must repay the C$500,000.
Accelerate has received approval for a six to 12-month drilling program that will test a series of high priority targets across the project, with groundwork having already commenced.
Earn-in
To purchase the 51 per cent of Rossland, Accelerate will issue 12.5 million shares to Carrie Rose and payment of C$200,000 (approx A$207,000).
If Accelerate completes stage one of the earn-in agreement, it can purchase the additional 49 per cent of the project for C$1 million (around $1.04 million) and will issue 25 million shares. However, all of this will need shareholders approval.
“The Rossland Gold Project represents a highly leveraged, low-cost opportunity to acquire an advanced high-grade exploration play,” Non-Executive Chairman Grant Mooney said.
“With early success, this could rapidly evolve into a development proposition in a low risk jurisdiction with significant surrounding infrastructure and major gold players,” he added.
Placement
The company is currently finalising details to raise approximately $1.7 million at an issue price of five cents per share.
The funds will be used to fund the due diligence drilling program and for general working capital purposes.
Board Changes
If Accelerate goes ahead with stage one earn-in agreement, the company will become the project manager of the Rossland Gold Project. It intends to appoint Currie Rose CEO, Michael Griffiths, as technical director.
Michael is a qualified geologist with more than 35 years in the minerals and energy sector in Australia, Canada and Africa.
Company shares are in a trading halt and last traded for 5.6 cents per share on August 28.