Foundation Resources Inc TSXV:FDN will buy the remaining 40% interest in the Coldstream Gold Project in northwestern Ontario from Alto Ventures Ltd TSXV:ATV for $2.5 million in cash and shares. Over an initial six-month period Foundation will pay Alto $1.3 million and issue the company 10 million common shares at $0.12 a share. On the closing date Foundation will pay an additional $350,000 and issue Alto up to 10 million shares. Foundation will pay a further $950,000 and issue the balance of any shares due to Alto within six months of the closing date.
Coldstream hosts a number of gold targets including the East Coldstream Deposit, which has an indicated resource estimated at 3.5 million tonnes grading 0.85 grams per tonne for 96,400 ounces gold and an inferred resource estimated at 30.5 million tonnes grading 0.78 g/t for 763,276 ounces gold.
Foundation President/Director Ike Osmani commented, “We are very pleased to acquire the remaining 40% interest in the Coldstream Property, which is a substantial step forward in the development of the company. This consolidation of ownership enhances Alto as a strategic shareholder and creates additional value for our existing shareholders.”
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Foundation Resources Inc
Alto Ventures Ltd
or Rick Mazur
by Greg Klein