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Highlights
- Advance Metals acquires an 80% stake in the high-grade Myrtleford and Beaufort Gold Projects in Victoria, Australia, through a joint venture with Serra Energy Metals Corp.
- The company is set to acquire the Gavilanes Silver Project in Mexico, which holds an estimated 22.4 million ounces of silver equivalent, from Sailfish Royalty Corp.
- AVM shares surged by 17.65% following the announcement, trading at four cents by 10:23 AEDT.
Advance Metals Ltd (ASX:AVM) has taken a significant step in strengthening its precious metals portfolio with strategic acquisitions in Australia and Mexico. The company has signed binding agreements to secure interests in two gold projects in Victoria, Australia, and a high-grade silver project in Mexico, positioning itself for growth amidst record-high gold and silver prices.
The Australian acquisitions involve an 80% interest in the Myrtleford and Beaufort Gold Projects located in the renowned Victorian Goldfields. These projects, acquired through a joint venture with Serra Energy Metals Corp, present substantial exploration potential. Myrtleford is highlighted by Serra’s discovery of the 13-kilometer Happy Valley Trend, characterized by significant gold mineralization.
Additionally, Myrtleford and Beaufort are home to over 70 historical high-grade underground gold mines and hundreds of mineralized workings. Despite their rich mining history, these areas have undergone limited modern exploration, enhancing their appeal. The Beaufort Gold Project, with a 20-kilometer trend historically mined for alluvial gold, boasts an estimated production of 1.16 million ounces, underscoring its potential for future development.
In Mexico, Advance Metals is set to acquire the Gavilanes Silver Project through a binding agreement with Sailfish Royalty Corp. The project includes a Foreign Estimate of 22.4 million ounces of silver equivalent at an impressive grade of 245.6 g/t AgEq. Its proximity to the San Dimas mine, operated by First Majestic Silver Corp, further enhances its strategic value.
This acquisition will complement AVM’s existing silver asset, the Yoquivo Project in Mexico, which holds a Foreign Estimate of 17.23 million ounces of silver equivalent, grading 570 g/t AgEq. Together, these assets position Advance Metals as a prominent player in the silver market.
The acquisitions come at a time when gold prices are soaring, driven by strong demand and favorable market conditions. This has amplified interest in high-grade gold projects like Myrtleford and Beaufort, known for their historical production and significant exploration upside.
Investors reacted positively to the news, with AVM shares rising 17.65% in morning trading, reaching four cents by 10:23 AEDT. This reflects market confidence in the company’s strategic direction and its ability to unlock value from these acquisitions.
Advance Metals Managing Director expressed optimism about the acquisitions, stating, “These projects align perfectly with our strategy of acquiring high-potential precious metals assets in globally recognized mining regions. We are excited about the exploration opportunities in Victoria and Mexico and look forward to delivering value to our shareholders.”
