Eldorado lifts Amex stake to 27%: project economics and toll-milling lens
Reviewed by Tom Sullivan
First reported on MINING.com
30 Second Briefing
Eldorado Gold has lifted its stake in Amex Exploration to 27.3% on a non-diluted basis by acquiring 14.87 million shares at C$4 each in a C$59.5 million private transaction that appears to replace Eric Sprott’s position. Amex’s Perron project in Quebec now hosts 8.2 million tonnes of measured and indicated resources at 6.1 g/t gold (1.6 Moz), plus 5 million inferred tonnes at 4.31 g/t (698,000 oz), including the high-grade Champagne zone at 16.2 g/t. Bulk sampling at Perron is in permitting, with toll-milling discussions under way and Eldorado’s Lamaque/Sigma mill an obvious processing candidate.
Technical Brief
- Eldorado used the NI 62-104 “private agreement exemption”, capping consideration at 115% of market price.
- The matched block trade comprised exactly 14,868,200 shares at C$4, mirroring Sprott’s divestment volume and price.
- Post-transaction, Eldorado holds 38,626,330 Amex shares plus 207,000 warrants, without triggering takeover intentions.
- The transaction typifies producers favouring strategic equity positions in juniors rather than expanding reserves solely via in-house exploration.
Our Take
Eldorado Gold’s move to 27.3% in Amex Exploration lines up with its capital and technology being increasingly concentrated in Québec, where our coverage already shows it committing to battery-electric fleets at the Lamaque Complex in Val-d’Or.
At Perron’s reported grades and contained gold, the project looks technically compatible with toll-treatment or future blending options through Eldorado’s existing Sigma mill infrastructure in Abitibi, which could shorten time to cash flow versus a standalone build.
In our database of 407 mining stories, relatively few M&A items combine high-grade gold in Québec with an acquirer already operating nearby, suggesting this deal could tighten competition for remaining independent explorers in the Abitibi belt.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
Related Articles
Related Industries & Products
Mining
Geotechnical software solutions for mining operations including CMRR analysis, hydrogeological testing, and data management.
Construction
Quality control software for construction companies with material testing, batch tracking, and compliance management.
CMRR-io
Streamline coal mine roof stability assessments with our cloud-based CMRR software featuring automated calculations, multi-scenario analysis, and collaborative workflows.
HYDROGEO-io
Comprehensive hydrogeological testing platform for managing, analysing, and reporting on packer tests, lugeon values, and hydraulic conductivity assessments.
GEODB-io
Centralised geotechnical data management solution for storing, accessing, and analysing all your site investigation and material testing data.