Advanced Gold Exploration (CSE: AUEX) has signed a non-binding memorandum of understanding to take over Ameerex Corporation’s right to acquire the Corcoran Canyon silver-gold property in Nye County, Nevada.
Under the MOU, Advanced Gold would assume Ameerex’s agreement to buy 100% of North American Silver Corporation, and indirectly Centennial Mining, from Electric Metals (USA) Limited. The two entities hold Corcoran Canyon along with the Belmont properties.
The company expects to take on roughly US$3.4 million in remaining cash payments owed to Electric Metals. About US$1.2 million of that is due on or before October 31, with approximately US$2.2 million to follow. Ameerex would also receive 4,045,500 Advanced Gold shares at a deemed price of $0.12 apiece for amounts it previously advanced on the properties.
Corcoran Canyon is a low-sulfidation epithermal system on the eastern edge of the Toquima Range. A 2020 technical report prepared for Electric Metals outlined a historical inferred estimate for the Silver Reef Zone, a northeast-trending zone roughly 300 metres wide and 1 kilometre long that remains open laterally and at depth.
That historical resource estimate consists of:
- Pit-constrained inferred resources of 31.5 million tonnes grading 39 g/t silver equivalent (21 g/t silver and 0.23 g/t gold)
- Containing approximately 39.0 million silver equivalent ounces
- Underground inferred resources of 175,000 tonnes grading 122 g/t silver equivalent
- Containing approximately 0.7 million silver equivalent ounces
Director Shahab Samimi said the goal is “to advance the project from inferred to indicated and expand the known mineralization,” noting Ameerex will become a strategic shareholder.
The October payment hinges on a proposed US$1.2 million private placement with an arm’s-length Qatari investment group at C$0.15 per share, with each share carrying a warrant exercisable at $0.20 for two years. The group has also signalled interest in a further investment of up to US$2.5 million, though no terms have been set.
Closing remains subject to definitive agreements, the scheduled payments and CSE acceptance.
Advanced Gold Exploration last traded at $0.10 on the CSE.
