Au Gold enters deal to acquire Havelock Au-Sb project

Executive Summary

• Au Gold Corp. has entered into an agreement to acquire a 100% interest in the 11,663-hectare Havelock gold-antimony project in Victoria, Australia, from Leviathan Gold Australia (LGA).
• The transaction consideration consists of $75,000 in cash and the issuance of 5,000,000 common shares, supplemented by future per-ounce royalties for discovered and produced gold.
• The project hosts shallow, undrilled epizonal and mesozonal gold-antimony targets with historic high-grade production, multiple structural trends, and significant exploration upside, pending TSX Venture Exchange approval.

Key Details

• Transaction Structure: 100% acquisition of the Havelock project from LGA (wholly owned subsidiary of Leviathan Metals Corp.).
• Upfront Consideration: $75,000 total ($10,000 payable upon signing; $65,000 payable upon TSX Venture Exchange acceptance for filing).
• Equity Component: Issuance of 5,000,000 Au Gold common shares to LGA.
• Royalty/Contingent Payments: $3 per ounce discovered (measured, indicated, or inferred category); $1 AUD per ounce discovered and $1 AUD per ounce produced payable to Mercator Gold Australia (capped at $1M AUD for discoveries and $1M AUD for production).
• Project Location & Size: 11,663 hectares in the Victorian gold fields, Australia, located between Bendigo and Ballarat.
• Geological Targets: Shallow, undrilled epizonal and mesozonal gold-antimony targets; two significant structural trends identified (Shaw-McFarlane trend spanning ~9 km and Leviathan-Mariner's trend spanning 3 km).
• Historic Production & Exploration: Historic underground workings recorded gold grades between 1 to 10 oz/t; 2010 dam excavation yielded 514 oz of gold (including 23 kg of gold-bearing quartz); 2021 LGA drill program (8 holes) returned significant results from 4 holes.
• Depth Potential: Historic mining reached 500 ft (152 m) on SMT and 900 ft (274 m) on LMT; epizonal systems in Victoria known to extend beyond 1,000 m.
• Regulatory & Corporate: Transaction subject to TSXV acceptance for filing; NI 43-101 technical report being prepared by William Wengzynowski, PEng; LGA will beneficially own ~11.16% of post-closing shares; early warning report to be filed on SEDAR+.
• Future Plans: Incorporation of wholly owned Australian subsidiary (Havelock Gold Pty. Ltd.); immediate commencement of exploration and drilling programs targeting high-priority gold-antimony zones.

Notable Quotes

• Marc Blythe, President & CEO: "Recent success at Fosterville (Agnico Eagle), Sunday Creek (Southern Cross Gold) and Costerfield (Alkane Resources) has highlighted the potential of Victoria's epizonal gold-antimony deposits. At Havelock, mining in the 1880's recovered high-grade gold-bearing quartz reef with abundant stibnite (antimony sulphide) at one of at least seven workings along a nine km trend within the project area. This historic mining has never been followed up with modern exploration programs or drilling. We are very excited to start exploration, including testing high-priority gold-antimony targets at Havelock."