Two Perth, Australia-based junior miners are teaming up to form a new gold exploration outfit in the Timmins area.
Aston Minerals announced last week that it’s entered into a “binding scheme implementation deed” with Torque Metals to create a well-funded “growth-driven gold explorer" in the Abitibi greenstone belt.
This new gold entity will have a total resource of 1.75 million ounces based on the 1.5-million ounces at Aston's Edleston Project and the 250,000 ounces at Torque’s Paris Gold Project in Western Australia.
In what’s being called in a news release as a “merger of equals,” Torque will acquire Aston in providing one share for every 5.2 Aston shares, representing an offer price of $0.01 per Aston share.
Pending Aston shareholder approval, the deal could be sealed by late April or early May. The combination will see each company owning a 50 per cent stake in the new entity.
Aston's Edleston Project is located 60 kilometres south of Timmins, 80 kilometres west of Kirkland Lake and 20 kilometres west of Alamos’ Young-Davidson mine.
Aston started out as a gold company but became fixated last year on the nickel potential on the 310-square-kilometre property. Edleston also contains a 1.27-billion tonne nickel and cobalt resource.
Aston did carry out a gold exploration program at Edleston last year that produced some high-grade drill results on the property, which sits on the western extension of the Cadillac-Larder fault zone, home to a number of gold mines and exploration projects.
In a statement, Cristian Moreno, Torque’s managing director, said the proposed merger will create a “dynamic growth-focused gold explorer with a dominant position in two leading mining jurisdictions.”
“Torque will command an extensive landholding in two premier mining jurisdictions and leverage current cash reserves exceeding $5 million to fund ongoing exploration activities.”
“As Torque already owns the Paris Gold Project, located in the heart of the Western Australian Goldfields, the merger enhances the strategic potential of this asset and aligns with Torque's broader growth objectives. With a resource of 250,000 ounces at an impressive grade of 3.1 g/t gold, the project spans a substantial ~1,200km² tenement package, positioning it as a cornerstone of our portfolio.
"Complementing this, Aston’s Edleston Gold Project in Ontario, Canada, is situated in the renowned Abitibi Greenstone Belt and contributes a significant resource of 1.5 million ounces at 1.0 g/t gold. This project’s ~310km² landholding offers additional high-grade exploration opportunities, further solidifying our growth potential.”