Advance Metals Limited (ASX: AVM) has agreed to sell its non-core Elko Coking Coal Project in British Columbia, Canada, as it sharpens its focus on growing its high-grade silver and gold portfolio in Mexico and Australia.
The Company has entered into an agreement to sell 100% of the issued share capital of Pacific American Coal Canada Ltd, which holds the Elko coal licences, to Elko Metallurgical Resources Corporation (EMRC).
The transaction consideration comprises:
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C$250,000 in cash upon completion;
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C$2,500,000 in cash upon the grant of a mining licence and receipt of all regulatory permits required to enable development of the project;
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C$2,500,000 in cash upon the project achieving commercial production of two million tonnes of product coal per annum; and
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An ongoing life-of-mine production royalty of:
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US$1.50 per tonne where the average net price received at the point of loading is between US$120 and US$150 per tonne; and
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US$3.00 per tonne where the average net price received at the point of loading exceeds US$150 per tonne.
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The transaction has the potential to deliver up to C$5.25 million in cash to Advance, in addition to long-term royalty exposure linked to future production success at Elko, without further capital commitments.
Advance has held the Elko Coking Coal Project since 2014. The asset comprises three British Columbia Coal Licences (418648, 418649 and 418650) and is considered non-core, with the last significant on-ground work completed in 2018.
The divestment removes ongoing holding costs associated with the asset and reinforces Advance’s strategic transition into a focused precious metals growth company.
EMRC’s management team brings extensive experience in permitting, developing and operating coal mines in Canada and internationally. This includes Mr Ian Slater, formerly Managing Partner for Ernst and Young’s Canadian mining practice and founder of multiple mining companies including Valory Resources, which recently permitted and is developing Mine 14 in Alberta. EMRC’s management also includes mining executive Mr Brian McDonald, whose previous roles include Executive Chairman of Fitzroy Australia Resources, Managing Director of Vale Australia, Managing Director of AMCI Australia and CEO of MIM Holdings Coal Group.
Advance Metals Managing Director and CEO Adam McKinnon said:
“The sale of this project to the experienced team at Elko Metallurgical Resources Corporation is a great outcome for Advance’s shareholders. With exceptional drilling results continuing to flow from our high grade silver and gold assets in Mexico and Australia, this transaction allows us to concentrate our efforts where we see the greatest near-term value creation opportunities.”.
“We remain fully funded for our current exploration and resource upgrade programs, with an updated JORC Resource Estimate at Yoquivo targeted for the end of the first quarter of 2026. Divesting Elko further streamlines the business while preserving long-term royalty upside potential for shareholders.”
Ongoing work at the Yoquivo Project in Mexico continues to deliver strong results, including exceptional high-grade silver and gold intercepts and historic core resampling highlighting broader mineralised zones (ASX AVM 6 February 2026). The upcoming JORC Resource update will assess both underground and potential bulk-tonnage development scenarios, supported by a strong silver and gold price environment.
Completion of the Elko transaction is scheduled to occur on or around 27 February 2026, subject to customary pre-completion steps and standard closing conditions.
About us:
About Advance Metals
Advance Metals Limited (ASX:AVM) is an Australian-based exploration company focused on the discovery and development of high-quality, high-grade silver and gold assets in Mexico. With an experienced management team and a strategy underpinned by aggressive exploration and strategic growth, the Company is positioned to become a significant participant in the silver-gold sector.
Contact details:
Jane Morgan
Investor & Media Relations Manager
Advance Metals Limited
+61 (0) 405 555 618
[email protected]
