AM Resources Enters Into Option Agreeement

AM Resources Corp. (TSXV:AMR) announced the signing of an option agreement to acquire a 60 percent interest in a Colombian gold property, a US$600,000 debenture units financing, the settlement of a US$157,802 debt in common share of the corporation and the appointment of Mr. Dominic Voyer as president and director of the corporation.

As quoted in the press release:

Mico Option

Pursuant to the Mico option agreement, among AM, the wholly owned Colombian subsidiary of AM, AM Resources SAS and Universal Geoaguas Limitada, AM SAS can earn a 60 percent interest in the Mico property by making minimum expenditures of C$50,000 over a twelve month period.

The Mico property is located approximately 540 kilometers north of Bogota, Colombia and consists of mining right LSB-74 covering an area of 10.4 hectares and application SC3-15031 covering an area of 6,000 hectares. The property does not host an active mine at present but two veins have been apparently recognized in historical diggings including one that can reach 50 centimeters in width within a 2 meters wide stringer zone. The extent of the veins are not known.

The transactions contemplated in the Mico agreement is subject to TSXV and regulatory approvals, and satisfactory completion by AM of its due-diligence.

Debenture Financing

AM is also please to announce a private placement offering of debenture units for aggregate gross proceeds of up to US$600,000. 

The net proceeds received by the corporation will be used to fund working capital and general corporate purposes, including but not limited to, financing of the operations of corporation’s gold trading subsidiary, AM Resources Trading Corp.

Each debenture unit will be offered at a price of US$1,000 per debenture unit and consist of US$1,000 principal amount of 15 percent unsecured convertible debentures and 250 Share purchase warrants of the corporation. Each warrant will be exercisable to acquire one share at an exercise price of C$0.30 per share for a period of 12 months following their issuance.

The debentures will bear interest from the closing date of the offering at 15 percent per annum, calculated semi-annually on June 30 and December 31 of each year. The first interest payment will be made on December 31, 2018 and will consist of interest accrued from and including the closing date to December 31, 2018. The debentures will mature on the date that is 12 months from the closing date.

Debt Settlement

AM is also please to announces that it has entered into a shares for debt agreement to settle a debt totaling US$157,802.22owed to a creditor, via the issuance of 701,343 shares, at a price of C$0.225 per share pursuant to the minimum pricing rules of the TSXV and subject to TSXV final approval.

Click here to read the full AM Resources Corp. (TSXV:AMR) press release.