AS Gold Corp. and Southern Empire Resources Corp. have entered into a binding agreement where Southern Empire will acquire all of the issued and outstanding common shares of MAS Gold.
MAS Gold has two advanced-stage gold deposits having NI 43-101 mineral resources located in the La Ronge Gold Belt of Saskatchewan, Canada: the North Lake Gold Deposit containing 417,000 ounces gold (oz Au) is comprised of an Inferred Mineral Resource of 14.1 million metric tons (mt) grading 0.92 grams gold per mt; and the Greywacke North Gold Deposit containing 95,600 oz Au is comprised of an indicated mineral resource of 255,500 mt at 9.92 g Au/mt, plus an inferred mineral resource of 59,130 mt at 7.42 g Au/mt, at a cut-off grade of 5 g Au/mt.
The company said a significant potential for resource expansion exists at both Greywacke North and North Lake. Excellent exploration potential also exists for MAS Gold’s Preview-North Property, which hosts the Point gold deposit, Henry Lake and Elizabeth Lake properties.
The combined entity will have a strong balance sheet, with no debt and a cash position of approximately $5.5 million, which will be used to target expansion of the current NI 43-101 resources as well as exploration and development on all of Southern Empire’s projects.
Chief Executive Officer of Southern Empire Dale Wallster said, “With this transaction, Southern Empire will emerge as a company having NI 43-101 gold resources in Saskatchewan, annually ranked as one of the best mining jurisdictions in the world, which we will target to expand and enhance. Together with our Oro Cruz and Eastgate gold projects in the southwestern USA, we will be a multiasset, advanced-stage gold exploration and development company with holdings in some of the best mining jurisdictions in the world.”
Southern Empire will issue a total of 5,828,090 Southern Empire shares to the shareholders of MAS Gold.
Following the completion of the transaction, Southern Empire will have 56,734,890 issued and outstanding shares, of which the former shareholders of MAS Gold will hold approximately 10.3%.
Netolitzky is chairman and director of Southern Empire and chief executive officer, president and a director of MAS Gold and Andrew Davidson is chief financial officer of each of Southern Empire and MAS Gold.
The transaction is expected to close in the second half of 2020.