MONTREAL - Amex Exploration Inc. (TSXV:AMX) will acquire a Mexican mining and exploration subsidiary from Blue Note Mining Inc. (TSXV:BNT) for the equivalent of about $2.1 million in shares and cash, the two companies announced Monday.
Amex can acquired 100 per cent of X-Ore International Inc. in exchange for $200,000 cash, seven million common shares and one million warrants allowing the holder to buy Amex shares at an undisclosed price within two years.
Based on the Friday closing price of 27 cents per Amex share, the stock portion of the offer was worth just under $1.9 million.
Amex has also agreed to assume all of X-Ore’s obligations and liabilities, but didn’t disclose details of what they were or how much they would cost.
Completion of the transaction is subject to Amex being satisfied with its due diligence and other conditions. They companies expect to reach a definitive agreement and complete the transaction by March 15.
"This transaction represents a milestone in the development of Amex on the international scene," said Jacques Trottier, the president and CEO of Amex.
The deal gives Amex access to a portfolio of projects in the Sierra Madre gold-silver belt - most notably, the Natora project covering 40,000 hectares of land near the Dolores and Mulatos mines, which are owned respectively by Minefinders Corp. (TSX:MFL) and Alamos Gold Inc. (TSX:AGI).
"Amex management does believe that this particular project has the same geological, structural and geochemical settings as its nearby neighbours and will start an aggressive exploration program as soon as the transaction has received final approvals," Trottier said.
Blue Note chief executive Michael Judson said the transaction will allow his company to focus on developing the Croinor gold project while recognizing the value of its X-Ore holdings.
"This is an opportunity to unlock shareholder value. Amex managers have a great reputation and track record as explorationists in Latin America. We look forward to their continued success," Judson said.
Blue Note shares gained a penny to 16 cents on Monday, while Amex shares fell two cents to 25 cents.
