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AM Resources to acquire 60% in Colombian gold property

11th June 2018

By: Marleny Arnoldi

Deputy Editor Online

     

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TSX-listed AM Resources Corporation has signed an option agreement to acquire a 60% interest in a Colombian gold property and is seeking to raise $600 000 in a private placement on the TSX.

Pursuant to an option agreement among AM Resources, its Colombian subsidiary AM Resources SAS (AM SAS) and Universal Geoaguas Limitada, AM SAS can earn a 60% interest in the Mico property by making minimum expenditures of C$50 000 over a 12-month period.

The Mico property is about 540 km north of Bogota, Colombia, and comprises mining right LSB-74, covering an area of 10.4 ha, and application SC3-15031, covering an area of 6 000 ha.

“The property does not host an active mine at present but two veins have been recognised in historical diggings including one that can reach 50 cm in width within a 2 m wide stringer zone. The extent of the veins is not known,” AM Resources reported on Friday.

AM Resources holds interests in coal and natural bitumen projects in Colombia.

Moreover, AM Resources is offering debenture units in a private placement aimed at raising aggregate gross proceeds of $600 000 to be used for working capital and perhaps financing operations of the company’s gold trading subsidiary, AM Resources Trading.

Each unit will be offered at $1 000 and comprises the principal amount, with 15% unsecured convertible debentures, and 250 share purchase warrants of AM Resources. The warrants will be exercisable to acquire one share at an exercise price of C$0.30 apiece for 12 months.

Meanwhile, AM Resources has appointed its CEO Dominic Voyer as president of the company, effective June 8, following David Grondin’s resignation from the position. Grondin will remain on the board.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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