Amex Exploration Completes C$34 Million Private Placement with Eldorado Gold Participation

• Oversubscribed Financing: Closed first tranche of C$34.2 million, exceeding initial maximum by C$4.3 million due to investor demand 
• Eldorado Ownership Increase: Strategic investor raised stake from 9.57% to 17.01% through share purchases totalling C$17.6 million 
• Tax-Advantaged Structure: C$25 million raised through charity flow-through shares providing tax benefits to Canadian investors 
• Exploration Focus: Proceeds allocated to drilling and target definition at 197.52 square kilometre Perron Gold Project
• Additional Funding Pending: Final tranche of up to C$3 million expected to close, bringing total to C$37.25 million

Amex Exploration Inc. (TSXV:AMX) is a Canadian junior mining company focused on the acquisition, exploration, and development of gold and base metal projects, primarily in Quebec, Canada. The company operates the Perron Gold Project, located 110 kilometres north of Rouyn-Noranda, Quebec. The company has identified high-grade gold discoveries and copper-rich volcanogenic massive sulphide zones across its 100%-owned property comprising 117 contiguous claims covering 45.18 square kilometres.

Combined with the adjacent Perron West Project, which includes 48 claims in Quebec and 35 claims in Ontario, the consolidated land package spans 197.52 square kilometres. The property is accessible via year-round road, situated 20 minutes from an airport and 8 kilometres from Normétal, with proximity to processing facilities operated by established gold producers.

Private Placement Details and Structure

The first tranche consisted of 11 million charity flow-through shares priced at C$2.27 per share and 5.798 million hard dollar shares at C$1.60 per share. Mills Dunlop Capital Partners received C$1 million as financial advisor to the company for the transaction.

The charity flow-through shares qualify under Canadian tax legislation, requiring the company to incur eligible exploration expenses at the Perron Gold Project by December 31, 2026. These expenditures will be renounced to subscribers by December 31, 2025, allowing investors to claim tax deductions. All securities are subject to a four-month hold period under Canadian securities regulations.

A second tranche of up to 1.877 million hard dollar shares at C$1.60 per share remains pending, which would raise an additional C$3 million. 

Eldorado Gold Strategic Investment

Eldorado Gold Corporation purchased 12 million shares through the transaction: 11 million charity flow-through shares from existing holders and 1 million hard dollar shares directly from Amex, both at C$1.60 per share. This increased Eldorado's holdings from 11.758 million shares (9.57%) to 23.758 million shares (17.01%) on a non-diluted basis.

The transaction was executed under an existing investor rights agreement between the companies. Eldorado, which operates gold and base metals mining operations in Turkey, Canada and Greece, stated the shares were acquired for investment purposes with no current plans beyond the strategic investment. The company noted it may adjust its ownership position based on market conditions and other factors.

Prior to this transaction, Eldorado held 11.758 million common shares and 207,000 warrants in Amex. Following completion, the company maintains the same warrant position while significantly increasing its equity stake. An early warning report detailing the transaction has been filed with securities regulators and is available through SEDAR.

Use of Proceeds and Operational Plans

Net proceeds from the offering will fund exploration activities across the Perron Gold Project, with focus on new target definition and drilling programmes, along with general working capital requirements. CEO Victor Cantore stated the financing would "position us for future discoveries" and "advance the project toward development."

The C$25 million from charity flow-through shares must be spent on qualifying Canadian exploration expenses related to the Perron Gold Project. These expenditures must be completed by December 31, 2026, with renunciation to investors occurring by December 31, 2025. The remaining C$9.3 million from hard dollar shares provides operational flexibility for corporate activities.

The Perron Gold Project hosts both bulk-tonnage and high-grade gold mineralisation styles within geology considered prospective for gold and volcanogenic massive sulphide deposits. The property's infrastructure access includes year-round road connectivity and proximity to existing processing facilities, which may reduce future development costs compared to more remote projects.

Corporate Outlook and Development Timeline

The completed financing provides Amex with working capital to execute exploration programmes through 2026, when the charity flow-through spending requirement expires. The company plans to focus on drilling activities and target definition across the consolidated 197.52 square kilometre land package during this period.

Eldorado's increased ownership represents the largest strategic investment in the company to date, though both parties have indicated no immediate changes to operational management or strategic direction. The completion of the final C$3 million tranche would bring total financing to C$37.25 million, representing approximately 18 months of exploration funding at current activity levels.

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