Amex Exploration has entered an agreement with Stellar Africa Gold to acquire Eastmain River North and South properties at Eastmain River, Québec.
The acquired properties are situated in the Eeyou Istchee Territory, James Bay.
The properties are accessible from Chibougamau town through the new 243km road to Stornoway's Renard diamond Mine (route 167 extension from Temiscamie).
This acquisition is expected to consolidate Amex Exploration’s land position in the area.
Amex Exploration president Victor Cantore said: “My geological team identified the Properties as desirable targets due to their favourable geology and proximity to our properties, as well as the Eastmain Mine.
“With this acquisition, we continue to accumulate land blocks that host the Eastmain Greenstone belt, which is prospective for ore deposits.
“This region has been vastly underexplored and our near-term goal is to build a sizable land position in the area that has excellent exploration potential.”
The Eastmain South property comprises 37 claims totalling 1,950 ha and is adjacent to the Eastmain Mine property owned by Eastmain Resources and to Amex's Eastmain South property.
The property is in the middle of a major regional fold that impacts the complete Eastmain Greenstone Belt that hosts the Eastmain gold mine.
Stellar’s Eastmain North property includes 16 claims totalling 840ha and is adjacent to SOQUEM Lac Harbour gold property located 25km north of the Eastmain Mine and directly to the north-east of Amex Eastmain North property.
The property is geologically laying over the contact zone between the north east arm of the Eastmain Greenstone Belt and Granitoid rocks of the Canadian shield.
Under the agreement, Amex will issue 350,000 common shares to Stellar.
Amex will have no further financial obligations to Stellar Africa Gold with the exception of a 1.5% net smelter return (NSR) from the proceeds of any commercial production.
Half of the NSR can be bought back anytime for an amount of $750,000.
The common shares issued to Stellar Africa Gold in counterpart of the acquisition will be subject to a hold period of four months.
The deal is subject to the TSX Venture Exchange approval.