Advance Metals (ASX:AVM) has entered a binding agreement with Endeavour Silver (TSE:EDR) to acquire a 100 per cent interest in the Guadalupe y Calvo Project, located in Chihuahua State, Mexico. The acquisition significantly expands Advance Metals’ presence in the silver-gold exploration sector. Advance Metals is a gold and silver explorer focused on developing its assets in Australia and North America.
Under the agreement, Advance Metals will pay US$4 million (AU$6.13 million) in cash, exploration expenditure, and shares over four years. The share price will be based on the 20-day volume weighted average price prior to issue. Upon completion of the earn-in requirements, Endeavour Silver will retain a 2 per cent net smelter return on production from the project.
Managing Director Adam McKinnon stated that the acquisition is a transformational milestone, increasing the company’s Mexican portfolio to over 100 million ounces of silver equivalent. He added that Advance Metals is now the largest ASX participant in the Mexican silver-gold exploration and development space, with substantial upside potential across its three projects. McKinnon also noted that Guadalupe y Calvo adds high-grade gold to their portfolio amidst strong demand and prices for both metals.
The Guadalupe y Calvo Project has a historical production of over 2 million ounces of gold and 31 million ounces of silver. It hosts approximately 86,000 metres of resource definition and exploration drilling. The project holds an indicated and inferred estimate of 9.5 million tonnes at 2.7 grams per tonne gold equivalent, containing 816,000 ounces of gold equivalent.
