SQX Resources Limited (ASX: SQX), a mineral exploration company dedicated to building a portfolio of exploration, development, and operating assets, has announced a binding agreement to acquire an 80% interest in AM6 Pty Ltd, marking its entry into the North American precious metals sector. AM6 holds the Williams Gold Project in Montana and the Red Bird Gold Project in Arizona. The acquisition is subject to conditions precedent, including shareholder approval.
The Williams Au-Ag Project, located in Montana, features bonanza-grade vein-hosted gold and silver mineralisation. Historical exploration in the late 1980s included over 445 metres of exploration drives, stopes, and raises. Numerous multi-ounce gold and silver zones have been identified, including a stope that produced 876 tonnes grading 141.7 g/t Au and 780 g/t Ag. SQX sees large upside potential, with significant exploration conducted on only two of eight identified mineralised vein zones to date.
The Red Bird Project in Arizona targets epithermal vein, breccia, and replacement mineralisation. Formerly explored by Homestake Mining, historical underground chip-channel results include 56.4m @ 2.5g/t Au, 18.8m @ 2.3g/t Au, and 10.7m @ 8.5g/t Au. SQX intends to initially target the broader and larger tonnage potential for open-pittable mineralisation. The company also announced the appointment of Dr Julian Stephens to the Board as Executive Director upon completion of the acquisition.
To fund the acquisition and an accelerated exploration program at the Williams and Red Bird Projects, SQX has secured firm commitments for a $2,000,000 placement. The placement will involve the issue of 20,000,000 new shares at A$0.10 per share. SQX’s Executive Chairman, Mr Patric Glovac, stated that this is a transformative acquisition for SQX into the North American precious metals space, with the Projects offering significant upside and substantial historical exploration datasets.
