Eldorado Gold ups stake in Amex for $59.5 million
Eldorado Gold Corp. [ELD-TSX; EGO-NYSE] has increased its stake in Amex Exploration Inc. [AMX-TSXV, AMXEF-OTCQX, MXO-FSE] by spending $59.5 million to acquire 14.8 million common shares of Amex for $4.0 per share.
The shares were acquired pursuant to an agreement with a third party which the company did not name.
Following the acquisition, Eldorado beneficially owns 38.6 million shares and 207,000 warrants representing 27.3% of the outstanding shares on a non-diluted basis. That’s up from 16.7% prior to the share acquisition.
The announcement comes after financier Eric Sprott said a numbered company controlled by him had sold 14.8 million shares of Amex through a private agreement for $4.00 or a total consideration of $59.5 million.
As a result, Sprott has reduced his interest in Amex to 0.3% of the outstanding shares from 10.8% on a partially diluted basis.
On Thursday, Amex shares rose 1.04% or $0.04 to $3.88. The shares trade in a 52-week range of $4.15 and 80 cents.
Amex has made significant high-grade gold discoveries, along with copper-rich volcanogenic massive sulphide zone at its 100%-owned Perron Gold Project, located approximately 110 kilometres north of Rouyn-Noranda, Que.
The Perron Project 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.
Based in Vancouver, Eldorado is a mid-tier gold and base metals producer with an international portfolio that includes mining, development and exploration projects in Turkey, Canada, Greece, Romania, and Brazil.
Eldorado delivered gold production of 520,293 ounces in 2024, including 196,538 ounces from the Lamaque Complex in Quebec. Located in the Val d’Or mining district, the Lamaque Complex includes the Triangle Mine (Upper and Lower), the Ormaque Deposit, the Parallel Deposit, the Plug #4 Deposit and Sigma Mill.
The company recently tightened its 2025 annual gold production guidance to 470,000 to 490,000 ounces after producing 115.190 ounces in the third quarter of 2025.
Eldorado was in the news recently when it announced that Christian Milau would be joining the company as President. In that role, he is expected to oversee key operational and financial functions, while current President and CEO George Burns transitions to the role of CEO.
Milau served as CEO of Equinox Gold Corp. [EQX-TSXV, EQX-NYSE] from 2016 to 2022, leading the company through significant growth from a single-asset developer to a multi-mine producer with eight operating mines. He was also CEO at True Gold Mining and chief financial officer at Endeavour Mining Corp. (EDV-TSX-LSE, EDVMF-OTCQX,).