AVM Raises $13M for aggressive exploration across all projects

Our silver and gold Investment Advance Metals (ASX: AVM) just completed a $13m capital raising that was cornerstoned by global institutions.

AVM raised $13M at 10c and managed to bring onto its register the likes of:

• Jupiter Asset Management,
• Tribeca Investment Partners,
• Lowell Resources Fund,
• APAC Resources

Jupiter Asset Management (near ~$100BN assets under management) and Tribeca Investment Partners took up half of the raised amount which we take as a solid vote of confidence in AVM.

And yes, we added to our Position in AVM in the capital raise.

AVM’s shareholder register is now a lot stronger and finally the company has a decent chunk of cash to put to work on its projects…

AVM has three silver assets in Mexico, which combined have ~100M silver ounces in foreign resources:

1. Guadalupe y Calvo (60.6M oz silver equivalent foreign resource estimate)
2. Yoquivo (17.2M Oz silver equivalent foreign resource estimate)
3. Gavilanes (22.4M Oz silver equivalent foreign resource estimate)

AVM also has a high grade gold asset in Victoria - where the company is drilling right now.

So far the results from that project have been relatively strong and a Victorian peer has re-rated ~10x off what we think are not too dismillar intercepts. (we covered those results earlier this week here).

We think all three project’s resources can grow from where they are with some drilling, which can finally happen on a larger scale with the company’s cash balance where it will be after today.

AVM is also looking to pursue a North American listing

AVM also announced that it would look to complete a dual-listing in North America.

We think that silver stocks on the ASX (and especially the ones with assets in Mexico) are very much underappreciated when compared with North American peers.

We think the move to dual-list will be good for AVM and open up the stock to a whole new range of investors who know and understand silver stocks (and Mexico) really well.

In fact that dislocation was a key reason why we Invested in AVM:

We covered this all in our AVM launch note here: Our New Investment: Advance Metals (ASX: AVM)

Why we are Invested in AVM:

We published our Initiation Note on AVM on 19th September.

Here is a list of the 9 reasons why we Invested in AVM from our Initiation Note.

Check out the full note here for the deep dive on the reasons.

1. AVM has an estimated 100M ounces of silver equivalent resources. We think it can grow from here
2. AVM is undervalued relative to its silver peers on the ASX
3. We think silver could go on a ‘once in a generation’ run to new highs
4. Very few silver stocks on ASX
5. Mexico is a top silver and gold producer (and this is in a mature mining area)
6. Mexican silver projects are misunderstood on the ASX
7. AVM’s most recent acquisition adds scale to AVM’s portfolio
8. Exploration upside (three projects that haven’t been systematically drilled)
9. Victorian gold asset might justify AVM’s current valuation on its own

What’s next for AVM?

Assay results from AVM’s Victorian gold project 🔄

We said in our initiation note that we like AVM’s Victorian gold project a lot (especially with where the gold price is trading today).

We think that it could easily justify AVM’s current valuation (with some more exploration luck).

Last week, AVM released re-assay results from this project which showed a nice bump up in some of the grades.

(Source)

Next, we are hoping to see more of the same at depth in this part of the project:

(Source)

Sampling of old drillcore at the Yoquivo silver project in Mexico 🔄

We mentioned prior that we are also looking forward to the assaying of the untested drill cores found by the company.

The company has detailed that results from this are due in late October and will be used along with the recent diamond drilling results to update the JORC Resource for the project.

(Source)