Australia-based Advance Metals (AVM) has agreed to acquire a 100% interest in the Yoquivo high-grade silver project located in north-west Chihuahua state, Mexico, from Golden Minerals (GM) Company.

Under the terms of the binding agreement, AVM will acquire the Yoquivo Project from Golden Minerals’ wholly owned subsidiary Minera de Cordilleras, for a total consideration of $570,000, payable in cash, plus VAT.

The deal includes a nonrefundable cash payment of $20,000 for a seven-day exclusive due diligence period, followed by a $275,000 payment on the eighth day, with specific refund conditions. A final payment of $275,000 is due 28 days later.

The project includes seven mining concessions covering a total area of about 1,975ha. Third-party net smelter return royalties of 2%-3% will apply to all concessions.

The acquisition will be funded from AVM's existing cash reserves. AVM plans to allocate $100,000 for initial exploration work and permitting on the Yoquivo project.

The acquisition represents a very low-cost opportunity to establish a foothold in the silver sector, AVM said.

The Yoquivo project has a foreign estimate of 937,000 tonnes with a grade of 570g/t AgEq, totalling 17.23 million ounces of silver equivalent.

Golden Minerals acquired the Yoquivo project in 2017 and has since conducted extensive exploration. Since 2020, more than 16,500m of drilling have been completed at the Yoquivo site, including 70 diamond holes, in three drilling programmes.

AVM nonexecutive chair Craig Stranger said: “The acquisition of the Yoquivo silver project from GM in Mexico represents a compelling value proposition to AVM shareholders on highly attractive terms. We look forward to commencing work on the ground in Mexico as soon as is feasible.”

Earlier this year, AVM raised A$1.5m ($990,602) from professional investors. The funds will be utilised for exploration at the Augustus project in Australia and the Garnet Skarn project in the US, and to evaluate new opportunities in the clean energy sector.