Advance Metals Secures $13m to Boost GyC Silver-Gold Exploration in Mexico
Advance Metals (ASX: AVM) has received strong backing from local and offshore precious metals-focused funds to raise $13 million to help support its recent Guadalupe y Calvo (GyC) acquisition in Mexico.
The new capital will fully fund accelerated exploration programs at GyC, the company’s other high grade silver-gold assets in Mexico, and its high grade gold projects in Victoria, Australia.
Cornerstone investors Jupiter Asset Management and Tribeca Investment Partners led support for the two-tranche placement, applying for a combined $6.5m worth of Advance shares, with Lowell Resources Fund, APAC Resources, and Next Investors among the other key institutional investors.
Mexican Silver Portfolio
Advance recently highlighted the potential of its Mexican silver portfolio with the identification of a new high-grade zone at the Yoquivo project.
The company received high-grade hits from rock chip sampling as part of an initial regional campaign recently carried out Yoquivo, one of three high-grade silver-gold assets Advance identified last month.
Advance entered into a binding agreement with Endeavour Silver in mid-July for the right to earn up to a 100% interest in the GyC project over a four-year period.
The company has an aggressive work plan, including a maiden diamond drilling program at GyC in the coming months.
‘Immense Potential’
“I am exceptionally pleased by the support we have received with this placement, underscoring the immense potential of the high-quality silver and gold assets the company has assembled over the last year,” managing director Dr Adam McKinnon said.
“The placement puts the company in a fantastic position—fully funded to rapidly grow our silver endowment in Mexico and expand our high impact drilling campaign in Victoria.”
Advance will issue approximately 130 million new shares at $0.10 each, a 28% premium to the 20-day volume-weighted average price of $0.0784, with 1-for-2 unlisted options attached and exercisable at within two years of issue at $0.15.
The company has decided to pursue a dual-listing in North America on the back of the growing recent offshore interest in its portfolio.
Happy Valley Assays
In late September, Advance confirmed visible gold and received upgraded results from new tests conducted on assays from the Happy Valley prospect at its Myrtleford project in Victoria.
The company reported strong results from testing of the two highest-grade intervals from its previous drilling at Happy Valley via a program of screen fire gold re-analysis.
The two best intervals from that earler program saw increases of 29% to 8.2 metres at 28.8 grams per tonne gold from 186m including 3.4m at 68.2g/t from 186m, and 15% to 7.5m at 55g/t from 178m including 1.3m at 305.8g/t from 179.6m.