Eldorado Gold to hold 9.9% of Amex Exploration with share purchase
Amex’s flagship project is the Perron gold property located 110 km north of Rouyn-Noranda, Quebec.
Amex Exploration (TSXV: AMX) is making a non-brokered private placement of about 11.3 million charity flow-through shares at a price of C$2.35 each. The shares will be taken up by Eldorado Gold (TSX: ELD; NYSE: EGO) for a consideration of approximately C$26.7 million. Following the acquisition, Eldorado will hold a 9.9% interest in Amex.
The offering is expected to close on or before Feb. 2 and is subject to certain conditions.
“This investment represents a strong endorsement of the work conducted at the Perron project to date and leaves us well capitalized to pursue a dual strategy of advancing known zones of gold mineralization while continuing to unlock significant exploration potential through targeting new discoveries. We feel we have only scratched the surface of the gold potential at Perron,” Amex CEO Victor Cantore said in a news release.
“In addition, the company is well funded to produce a resource estimate and follow on preliminary economic assessment of the Perron project,” he added.
Amex’s flagship, wholly owned Perron gold property is 110 km north of Rouyn-Noranda, Quebec, and includes the historic Normetal gold mine. The property is accessible via road year-round and near power and water services.
Drilling discovered significant gold zones over a 4-km strike, giving the project the potential for a bulk tonnage open pit and high-grade underground mine, the company said.
The Eastern gold zone was first drilled in 2017 and contains a high-grade zone in a quartz vein system. The company recently drilled 23.81 g/t gold over 4.3 metres, including 2 metres at 50.35 g/t in hole PE-21-318W3 beginning at 1,100 metres below surface.
Hole 318W4 returned 6.55 metres grading 29.57 g/t gold, including 1.3 metre of 45.34 g/t gold from 1,150 metres. Hole 347W3 returned 3.5 metres at 5.10 g/t gold including 0.5 metre at 24.19 g/t beginning at 1,000 metres.
Metallurgical tests done on samples from this high-grade zone achieved gold and silver recoveries of over 99%, with 77% of the gold reporting to a gravity circuit.