Adventus Mining (TSXV: ADZN) has completed its acquisition of Luminex Resources (TSXV: LR), bringing together two junior names focused on operating within Ecuador, establishing a copper-gold developer within the region.
With the closing of the transaction, Adventus now adds a 98.7% interest in the Condor Gold project to its portfolio, along with the Pegasus project which has been operated by Anglo American since 2018, the Orquideas project which JOGMEC has developed since 2021, and multiple greenfield projects in the region.
Luminex’s key asset, Condor, is found in the southeast of Ecuador and has seen over 156,000 metres of drilling conducted on it to date. The project contains a mineral resource estimate of 2.3 million ounces of gold, 12.8 million ounces of silver and 93 million pounds of copper on an indicated basis, and a further 4.3 million ounces of gold, 18.1 million ounces of silver, and 357 million pounds of copper on an inferred basis.
Condor is set to become a major project in Adventus’ portfolio, next to Adventus’ own El Domo – Curipamba project, which has proven and probable reserves of 124.9 kt of copper, 16.2 kt of lead, 161.4 kt of zinc, 525,000 ounces of gold, and 9.5 million ounces of silver. The project just this week was granted an environmental license by the Ministry of Environment, Water, and Energy Transition in Ecuador, enabling Adventus to maintain prior guidance of a construction start for the project in the second quarter of 2024.
READ: Adventus Mining Granted Environmental License For El-Domo Copper Gold Project
The El Domo-Curipamba project is 75% owned by Adventus, while Salazar Resources (TSXV: SRL) maintains a 25% interest.
The transaction saw Luminex shareholders receive 0.67 of a share of Adventus for each share of Luminex held, resulting in the issuance of 117.4 million shares of Adventus. Key to the transaction, the acquisition brings in Ross Beaty’s Lumina group as a major shareholder, whom is now believed to own a 13% stake in the issuer.
As part of the transaction, Adventus successfully raised US$17.9 million through the issuance of 76.2 million subscription receipts at a price of $0.29 per each. Proceeds from the financing are to be used to advance El Domo – Curipamba, for exploration across Adventus’ portfolio, and for working capital.
Luminex shares are slated to be delisted on or about January 29, 2024, in connection with the acquisition.
Adventus Mining last traded at $0.27 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
