Amex Exploration (TSXV: AMX) is set to expand its ownership by strategic investors, with the company announcing this morning that Eldorado Gold (TSX: ELD) will be taking a larger stake in the company.
Eldorado intends to acquire 11.0 million common shares of Amex, with that investment to occur at a price of $1.60 per share, generating gross proceeds of $17.6 million for Amex. The purchase meanwhile will see the gold producer increase their ownership to an estimated 17% interest in Amex on an undiluted basis, which is an increase from the current 9.9% equity interest.
“Eldorado’s strategic investment significantly strengthens our exploration budget and reaffirms the high-quality potential of the Perron project and the recently acquired Perron West project. With a strong resource estimate already defined, we see substantial untapped upside across the broader property. This funding will enable us to aggressively pursue new targets and further demonstrate the scale and opportunity in the broader district scale camp,” commented Amex CEO Victor Cantore on the investment.
The investment is being made as part of a larger $30 million offering being conducted by Amex, which will see $24.97 million raised through the sale of 11.0 million charity flow through shares at $2.27 per each, and a further 3.13 million hard dollar shares sold at $1.60 per each, for further gross proceeds of $5.0 million.
Proceeds from the offerings are expected to be used to fund exploration across the Perron Gold project, with Amex placing an emphasis on new target definition and drilling.
Amex Exploration last traded at $1.73 on the TSX.
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