Kingston secures 12-month option to acquire 75% of Livingstone Gold Project

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Kingston Resources (KSN) has entered into a 12-month option agreement with Trillbar Resources to purchase a 75% interest in the Livingstone Gold Project in Western Australia.

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As consideration for the option, the company will pay the Vendors 5.5 million KSN shares (restricted) and 5 million options in KSN, exercisable at $0.025 within three years of issue.

Under the agreement, Kingston will commit to a minimum $200,000 exploration expenditure on the tenement.

In addition, if it chooses to exercise the option, Kingston will pay the Vendors $300,000 in KSN shares, issued at a 10% discount to the 20 day VWAP prior to exercise.

The Vendors will retain a 25% interest in E52/3403 which will be free carried until a decision to mine is made over a defined mining area.

The company’s Managing Director, Andrew Corbett, said the E52/3403 tenement has now been granted, adding that a first stage drill program has been submitted for approval with the Department of Mines and Petroleum (DMP) for drilling at the Homestead and Winja prospects in Q1 2017.

He said Kingston has received very encouraging results from initial grab samples taken from two lines of old workings at Livingstone’s Find.

“With the completion of the Livingstone agreement and extremely encouraging grab samples we are excited to be moving rapidly through the drilling approvals process,” Mr Corbett continued.

“Historical work in the area has allowed our exploration team to develop a focused first round campaign. The high-grade nature of both the historical drilling and recent grab samples underpins the exploration potential we see at Livingstone.”