Amex raising over $74.5 million for Quebec gold project
Amex Exploration Inc. [AMX-TSXV, AMXEF-OTCQX, MXO-FSE] said Monday that due to excess demand it has amended its agreement with an underwriting syndicate in connection with a $43.47 million private placement LIFE offering, consisting of 9.7 million common shares priced at $4.50 per share.
Under the agreement, the agents have been granted the over-allotment option to sell up to an additional 1.45 million common shares at the offering price in a move that could generate additional proceeds of $6.5 million. That option can be exercised in full or in part up to 48 hours prior to closing.
The company said it aims to raise an additional $30.9 million (in addition to the LIFE offering), by completing a non-brokered concurrent private placement offering of up to 1.62 million common shares at the offering price, as well as a brokered concurrent private placement of up to 5.25 million common shares at the offering price assuming that the agents’ over-allotment option is fully exercised and the maximum number of shares is issued in the non-brokered concurrent private placement.
Net proceeds of the LIFE offering and concurrent private placement will be used advance developing of the 100%-owned Perron Gold Project, located approximately 110 kilometres north of Rouyn-Noranda, Que.
Specifically, Amex is planning to fund a bulk sampling program, a portion of the phase 1.0 development of the Perron project, a feasibility study on phase 2.0 development and exploration on the company’s properties.
Meanwhile, strategic investor Eldorado Gold Corp. [ELD-TSX; EGO-NYSE] has indicated that it will purchase up to 4.56 million common shares under the brokered concurrent private placement, a move that would be in keeping with an investor rights agreement dated January 16, 2024. Eldorado recently upped its stake in Amex to 27.3% by spending $59.5 million to acquire 14.8 million shares of Amex at $4.0 per share.
In addition, Amex President and CEO Victor Cantore has signalled his intention to purchase up to 394,000 common shares under the brokered concurrent private placement (assuming the agents’ over-allotment option is exercised in full).
On Monday, Amex shares rose 1.76% or $0.09 to $5.21. The shares trade in a 52-week range of $5.34 and $1.06.
Amex has made significant high-grade gold discoveries, along with copper-rich volcanogenic massive sulphide zone at the Perron project.
It consists of 183 contiguous claims covering a service area of 65.75 kilometres. The project hosts both bulk-tonnage and high grade gold mineralization styles. When combined with the adjacent and contiguous Perron West and Hepburn projects (including additional claims acquired through staking) in Ontario, the consolidated land package spans a district-scale 501.08 square kilometres. The project is accessible by year-round road, located just 30 kilometres from an airport and is in close proximity to several processing plants owned by several gold producers.