Riversgold Ltd (ASX:RGL, OTC:RVSGF) has entered into a farm-out agreement with A.I.S. Resources Limited (TSXV: AIS, OTC Pink: AISSF) over its Saint John Gold-Copper-Silver-Antimony Project in southeastern New Brunswick, Canada.
Under the agreement, AIS can earn up to a 75% interest in the Saint John Project by meeting staged exploration and development expenditure commitments across four years.
Key terms
Initial consideration: Upon signing, AIS will issue 2,860,000 ordinary shares to Riversgold at a deemed price of C$0.05 per share.
To earn 51% interest:
- Year 1: AIS to spend C$400,000 on early-stage exploration, including drone-based MobileMT and IP geophysical surveys, and 1,000 metres of approved drilling.
- Year 2: A further C$1 million in drilling expenditure.
To earn 75% interest:
- Years 3–4: AIS to invest an additional C$3 million in drilling and early development activities.
Riversgold will retain a 25% free-carried interest through to a decision to mine. AIS is unrelated to Riversgold, and the agreement is subject to customary conditions typical of transactions of this nature.