Advance Metals Limited - Quarterly Report Highlights Augustus Project and Capital Raising
AVM (AVM) Share Update July 2024 Monday 29th
Advance Metals Limited Reports Progress on Augustus Project and Successful Capital Raising
Advance Metals Limited (ASX: AVM) has released its quarterly report for the period ending 30 June 2024, detailing key developments in its Augustus Project in Arizona and the successful completion of significant capital raising efforts.
Instant Summary:
- Exploration teams deployed for the 2024 season at Augustus Project.
- Phase 1 mapping and sampling completed; 30 samples sent for lab analysis.
- Exploration target defined: 19m tons – 25m tons @ 0.3%-2.0% Copper and 0.3g/t-7g/t Gold.
- 3D model development commenced to improve geological interpretation.
- Completed $1.8m capital raising via Two Tranche Placement and Rights Issue.
- Secured commitments for an additional $1.5m via Two Tranche Placement.
Augustus Project Developments
Advance Metals Limited (AVM) has made significant progress in its Augustus Project located in Yavapai County, Arizona. The exploration teams have been deployed for the 2024 season, focusing on expanding the technical databases through ongoing site surveys. Phase 1 mapping and sampling have been completed over a large area, with 30 samples sent to the lab for analysis. The results are expected in early August 2024.
AVM has defined an exploration target of 19 million tons to 25 million tons with copper grades ranging from 0.3% to 2.0% and gold grades between 0.3 grams per ton to 7 grams per ton. The company has also commenced the development of a 3D model to improve geological interpretation and refine drilling targets.
Corporate Developments
In addition to the progress on the Augustus Project, AVM successfully completed a $1.8 million capital raising via a Two Tranche Placement and Rights Issue. On 12 June 2024, the company secured commitments for an additional $1.5 million through a Two Tranche Placement, with Tranche 1 of approximately $686,000 already settled and Tranche 2 of approximately $814,000 subject to a forthcoming shareholder meeting.
At the Annual General Meeting held on 31 May 2024, shareholders approved all resolutions, including the appointment of Craig Stranger as Chair following the resignation of long-time Chair Geoffrey Hill. The board also welcomed Non-Executive Director Josh Gordon.
New Projects and Exploration Planning
During the quarter, AVM continued to actively seek out and review new complementary project opportunities across the globe, focusing on shareholder value accretion. The company developed exploration plans for the 2024 North American summer season, which included geological mapping, geochemical surveys, drilling plans, permitting plans, and exploration budgets.
Field exploration teams have been deployed to collect samples and complete detailed mapping. The results from these programs are pending, and the company will update its geological databases once complete. AVM also completed a site-wide review of potential drill pad locations and road access routes, minimizing the need for new road construction.
The progress on the Augustus Project and the successful capital raising efforts are likely to have a positive impact on AVM's stock. The defined exploration target and ongoing 3D model development enhance the project's potential, which could attract more investor interest. The additional funding will support further exploration and development activities, strengthening the company's financial position.
Investor Reaction:
Analysts are likely to view the developments positively, given the clear progress in exploration and the successful capital raising. The defined exploration target and ongoing 3D model development are seen as significant steps forward. However, investors will be keenly awaiting the lab results expected in early August 2024 for further validation.
Conclusion:
Investors should keep a close watch on the upcoming lab results and the continued progress on the Augustus Project. The successful capital raising and board changes indicate a strong strategic direction for AVM. Staying informed on these developments will be crucial for making informed investment decisions.