Advance Metals (ASX:AVM) announced the divestment of its Elko Coking Coal Project in British Columbia, Canada, to Elko Metallurgical Resources.
The move marks a significant pivot for the company, allowing it to streamline operations and redirect capital toward its high-grade gold and silver portfolios in Mexico and Australia.
The Elko Project, held since 2014, was deemed a non-core asset after nearly eight years without significant on-ground development.
The transaction is structured to provide both immediate liquidity and long-term upside.
Advance Metals is set to receive up to CAD$5.3 million in staged cash payments.
Beyond the cash injections, Advance retains a tiered royalty interest, earning US$1.50 per tonne if coal prices range between US$120–$150, and US$3 per tonne should prices exceed US$150.
CEO Adam McKinnon emphasised that the sale removes ongoing holding costs while preserving shareholder exposure to future production.
EMRC, led by industry veterans with deep experience in Canadian coal permitting, is well-positioned to advance the site.
Meanwhile, Advance Metals remains focused on its Yoquivo resource upgrade in Mexico, expected in Q1 2026.
At the time of reporting, Advance Metals' share price was $0.14.