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AGC: Large & High-Grade Resource; Further Growth in 2026

What you need to know:
• Avanti is a gold exploration company focused on its Misisi gold project in the DRC, which hosts an Inferred gold resource of 3.1Moz at 2.37 g/t Au.
• Having recently appointed new management and closed a $25M financing in October, the Company is now positioned to launch an expansive exploration program in 2026, which we believe shows potential of growing the resource to over 5.0Moz within the next two years.
• AGC trades at just US$34/oz in the ground vs. peers at US$185/oz.

Avanti Gold Corp. (AGC:CSE, AVTGF:OTC, X370:FSE) holds a 73.5% interest in the Misisi gold project located in Africa’s Democratic Republic of Congo (DRC), with potential to increase ownership by diluting minority stakes if proportional spending is not matched. The high-grade deposit is a well-known discovery, and Avanti has recently put together a strong leadership team behind advancing the project, with the market taking notice. The Akyanga deposit hosts an Inferred gold resource of 3.1Moz at a grade of 2.37 g/t (as of June 2023), with significant upside to further expand resources across the 133km2 land package, with 30-year exploitation licenses already in hand. Having recently raised $25M, AGC plans to initiate an expansive exploration campaign in early 2026. We are initiating coverage on Avanti Gold with a BUY rating and a target price of $0.90/share.

Investment Thesis Summary
High Grade, Sizable Resource and Growing. Misisi’s Akyanga deposit is one of the few open-pit gold resources in the world exceeding 2 g/t. The resource totals 3.1Moz at 2.37 g/t, and mining exploitation licenses are in place over the 133km2 land package, which do not expire until 2045, significantly derisking development. AGC plans to launch an aggressive exploration campaign early in 2026 (15,000m) with the target of growing the resource materially in the coming years.

Cheap Lift from 2,100m of Untested Core. Avanti has received permits to start the transport of its historical drill cores to an assay lab in Tanzania for analysis. With only ~20,000m of historical drilling, this will increase the database by ~10% and potentially increase Inferred resources and extend mineralization along strike and at depth without incurring drill costs. Results are expected in Q1/26 and will be followed up by Phase 1 exploration.

Substantial Exploration Upside. Avanti has yet to conduct its own drilling, but historical soil sampling and IP surveys across the 55km Kibaran Gold belt have already outlined high-priority targets. The Company has identified five additional drill-ready targets within 25km of Akyanga, and Akyanga itself remains open along strike and at depth.

Strong Parallels to Recently Acquired Loncor. In October, Chengtun Mining announced it would acquire Loncor Gold and its 85% ownership in the DRC-based Imbo project in a deal valuing Imbo’s 4.0Moz (2.50 g/t) resource at US$56/oz. We see numerous similarities between Imbo and Misisi, which currently trades at US$31/oz, highlighting an immediate near-term valuation gap.

The Right Team to Move Misisi Forward. The world-class asset has a long history, largely in local DRC hands, with limited access to capital to advance development. Earlier this year, Avanti began assembling a strong team with past success at major African miners, which has been reflected in the 12-month stock performance.