American Battery Metals (CSE: ABC) entered into a definitive agreement to acquire Fenix Gold by paying $250,000, issuing 29,000,000 common shares to the shareholders of Fenix as consideration for all of the issued and outstanding shares of Fenix and replacing 3,846,785 outstanding warrants of Fenix with 4,006,095 common share purchase warrants exercisable at a price of $0.20.
“These funds will be used immediately to maintain and advance the momentum and value being added by the exploration program at Abriaqui,” American Battery said in a press release.
Abriaqui has not yet been drilled but surface and underground geological mapping and sampling, as well as a preliminary magnetometry survey, have been completed
Abriaqui is a gold project located in Colombia, some 15 kilometres west of Continental Gold’s Buritica project in the Antioquia department.
The property sits at the northern end of the Mid-Cauca gold belt, a geological trend which has seen multiple large gold discoveries in the past 10 years including Buritica and Anglo Gold’s Nuevo Chaquiro and La Colosa.
According to American Battery, the property is drill-ready pending finalization of the government permitting process. Thus, the plan is to launch a Phase 1 exploration program that includes ground geophysics, soil sampling, and rock chip sampling of newly encountered areas of mineralization both at surface and in historical adits. Once targets have been fine-tuned, drilling is scheduled to commence by end of Q2-2020.
“The advance of funds to Fenix will help to jump-start the exploration efforts and places the company in the position to expedite the planned drill program once the transaction has been completed,” Jeremy Poirier, American Battery’s president and CEO, said in the media brief. “Given its location and the geologic similarities between Fenix’s Abriaqui and the neighbouring world-class Buritica project, we are very excited about the project’s exploration potential.”