TSX-V-listed Fosterville South has unveiled a transaction to spin out its Avoca and Timor tenements, in Australia’s Victoria, to Leviathan Gold, following which the new company will undertake an equity financing to fund the exploration, advancement and development of projects.
Leviathan, to be led by Luke Norman, will list on the TSX-V and will seek to raise at least $5-million.
Each Fosterville South shareholder will receive one share of Leviathan for each share held.
CEO Bryan Slusarchuk commented in a statement on Tuesday that Victoria was experiencing a boom.
“It is an incredible jurisdiction and has amazing geology with a history of high-grade gold production. While this modern day gold-rush is warranted, we feel fortunate to have had a multiyear head start, with COO Rex Motton having started assembling the Fosterville South land package years before the huge influx of companies we see today,” he said, noting that the company had a land assembly of more than 2 700 km2.
“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,” said Slusarchuk.
Fosterville South is currently drilling at the Golden Mountain project and is actively preparing targets at Lauriston for drilling.
Fosterville South’s stock closed nearly 18% higher on Tuesday at C$3.95 a share.