Australian metals exploration company Advance Metals (ASX:AVM) has signed a memorandum of understanding (MoU) with US-based consulting firm World Industrial Minerals.
Under the MoU, both parties will create a special purpose vehicle (SPV) that will be formed to invest in and acquire a range of critical and base metals projects across North America. This SPV will be called Bandera Mining Co, which Advance will hold a 75% interest in, with the remaining 25% interest being held by World Industrial Minerals.
Advance reports it has made an initial commitment of $100,000 which will be used as working capital to complete due diligence, and aid in the acquisition of prospective projects, with the SPV already identifying several ‘highly prospective’ areas in Texas.
The company also says the SPV will be managed separately by personnel from both companies, and notes it will continue to develop the Garnet and Anderson Creek projects independently but will be able to utilise the joint venture’s (JV) skill base where applicable.
Commenting on the MOU, Advance Metals Chairman, Geoff Hill says: “The opportunity to work with Jim Guilinger and a proven company like World Industrial Minerals is exciting for AVM and its shareholders. We have known the WIM team for a number of years and believe they can add significant value to the company.
“We have known the WIM team for a number of years and believe they can add significant value to the company”
Jim Guilinger the founder was instrumental in project managing Thor Minerals’ uranium-vanadium drilling program; identifying the Bradda Head Lithium Ni-43101 compliant resources as COO (Chief Operating Officer) at the Burro Creek Lithium Project in Arizona and more recently American Rare Earths’ (ASX:ARR) Halleck Creek Project in Wyoming which has now proven to be a 1.4 billion tonne JORC resource.
We hope to replicate that success with AVM in the base, precious, and critical minerals space. The adding of WIM’s skill base will help the US operations deliver on the promises made last year in its transformation to a US-focused metals explorer.”
Advance reports World Industrial Minerals has been a ‘leader’ in the identification, exploration, and development of critical and base metals projects in North America for over 30 years. It also notes the group has been at the forefront of working with international and domestic groups in acquiring, exploring, and developing strategic and critical minerals projects.
Also commenting, World Industrial Minerals President, Jim Guilinger says: “AVM and WIM will be able to unlock new opportunities in the Western USA that compliments AVM’s existing portfolio of assets. The signing of the MOU and creating the joint venture will help AVM add significant US mining expertise to its business.”
“The signing of the MOU and creating the joint venture will help AVM add significant US mining expertise to its business”
Advance reports it is working with its US legal counsel to develop the final JV agreement. The company also says the SPV will be established and based in Florida to pursue several opportunities in both the southwest and western regions of the US.
Once all administrative steps have been completed, Advance will look to acquire projects immediately, and will continue to develop a pipeline of ‘highly’ prospective projects.
Advance Metals is an Australian exploration company focused on developing a portfolio of precious, base, and strategic metals projects in North America. The company currently holds the Garnet Creek Copper Project and the Anderson Creek Gold Project in Idaho, US.
Images: Advance Metals Ltd
