American Pacific Mining Corp C.USGD

Alternate Symbol(s): USGDF

American Pacific Mining Corp. is a precious and base metals explorer and developer focused on opportunities in the Western United States. It has two flagship assets: the Palmer Project and the Madison Project. The Palmer Project is a Volcanic Massive Sulfide (VMS) project in Alaska. The Palmer Project is located only 60 kilometers (km) from the deep seaport at Haines, Alaska. The Madison Project is located in the heart of Montana’s prolific copper-gold belt only 38 km southeast of the world-renowned Butte Mining District. The Project consists of approximately 136 unpatented and six patented claims (2,514 acres), accessed via improved dirt roads. Its other projects include Gooseberry, Tuscarora and Red Hill. The Gooseberry Project is located in Storey County, Nevada, United States. The Gooseberry Project includes 42 unpatented claims, totaling over 708 acres. The Red Hill is a sediment-hosted gold project located 24 kilometers southeast of the 12-million-ounce Cortez Hills gold deposit.

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American Pacific Mining Corp

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Post by Sandleson May 13, 2020 1:41am

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Post# 31020555

Pump came from Casey Research International Speculator

was sent this by my broker friend that has client that put in buy reason and said it was due to this

ALERT

May 12, 2020

Buy Alert: Don't Miss This Opportunity to Ride the Gold Bull

Dear Speculator,

Since the beginning of the pandemic, gold has surged to $1,700 per ounce – and it’s holding steady there.

The case for gold and other precious metals is only getting stronger as central banks print more money, while global economies teeter on the edge.

Like many of you, I’ve been waiting for this opportunity. I plan to make a fortune, and I hope you do, too.

Major investment banks, like Goldman Sachs, are now advising their clients to buy into gold as they raise their price forecasts.

Chart

Buying physical gold is a solid move. But as an International Speculator subscriber, you know that junior gold miners give us leverage to gold prices. When gold moves an inch, these small stocks can move a mile.

So today, I’ve got a new junior recommendation for you.

And two ways to play it.

The Next Big Prospect Generator

American Pacific Mining (USGD in Canada or USGDD in the U.S.) is a very small Vancouver-based prospect generator.

Prospect generators use other people’s money to develop their projects, through joint venture deals with larger companies. They take a risk-free ride on the chance for a major discovery by retaining a significant interest in the projects their partners drill and develop.

This strategy helps to keep the burn rate very low, reducing dilution risk for investors.

Generally, prospect generators focus on a particular geographic area. It’s usually a place where management has special expertise that helps it come up with new project ideas.

American Pacific’s focus area is the U.S. As I told you in my April issue, this is a great jurisdiction for mining – which has only gotten better under COVID-19. Right now, western U.S. states are nearly the only places on Earth where exploration drilling is proceeding uninterrupted.

The company’s management team has deep experience in the U.S., including senior positions with Newmont Mining and U.S. Gold on projects in Nevada, Utah, and Idaho. It’s also run previous junior companies that were U.S.-focused.

American Pacific initially focused on Nevada, which is always a top spot to work. But the company also announced a recently acquired flagship in Montana. This project, Madison, is large enough that it’s attracted mining giant Rio Tinto as a funding partner.

Madison is a copper-gold project. It’s a past-producing mine with a long history, including a number of permits still in place. This shortens the path back to production.

Today, Rio Tinto can earn a 70% stake in the project by spending $30 million at Madison. This is a big funding package, meaning American Pacific is likely to see a lot more activity than your average junior company.

American Pacific will have a 30% share on anything Rio finds at the property. There are already a number of drill holes completed, which should be released in the coming weeks. So getting in right now gives us upside in case those are a hit.

American Pacific’s two other Nevada projects also have historical production and strong value-adding potential. The company is seeking joint venture partners for these projects, which is another potential catalyst.

USGD is well-promoted for such a small company. Over 230,000 shares trade daily. That’s great liquidity for a company that has only 21 million shares outstanding. The financing announced this week will likely add another 4 million shares to this total, but it’s still a tight share structure.

The post-financing market capitalization at the financing price of C$0.125 is just C$3.1 million, well below many other prospect generators right now. That price is also an attractive discount to the current trading price of C$0.14, as I write.

The warrants attached to the financing have an exercise price of C$0.20 and are good for 18 months. A warrant gives the holder the right, but not the obligation, to buy the stock at the exercise price at any time before the expiration date – in this case, 18 months from now.

If and when gold prices go higher from here, I believe junior miners, including USGD, could have a major move up. In fact, this company could hold particular upside. It’s lagged other juniors so far, as you can see from the chart below.

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Management has been digesting the recent acquisition of Madison and is just now starting to tell the story. Once drill results start coming out, it should help bring more attention to the stock.

When that happens, American Pacific could gain 50% simply by catching up to the wider gold junior sector.

In the case of a discovery, it could move much higher from there.

I think the stock has strong potential despite its current low valuation, driven by upcoming drill results from Madison as well as the new partners being brought on board.

Watch for a full Nine Ps write-up later. I may even visit the project and give you a field report if COVID-19 restrictions allow.

Opportunity No. One: Private Placement for Accredited Investors

Our first play on this junior miner is a private placement with an 18-month warrant attached to it – the same kind of opportunity Doug Casey, Rick Rule, and other famous investors have used to multiply their wealth in the resources sector.

Those of you who qualify as accredited investors can participate.

But we need to act fast because this is a public deal.

I believe other investors also will be clamoring for a spot in the placement.

If you’re an accredited investor, contact American Pacific CEO Warwick Smith at warwick@americanpacific.ca, and follow his instructions on participating in the private placement.

There will be limited seats at the table, so don’t delay.

(Just to be clear, neither myself nor Casey Research is getting any compensation from this deal. No finders fees, no commissions, nothing. I’m bringing it to you because I think it’s a good opportunity, like the other companies in our portfolio.)

Also, our customer service team will not be able to assist with private placements. Contact the company with any questions or concerns.

Opportunity No. Two: Non-Accredited Investors

If you’re unable to participate in the placement, you can buy shares of American Pacific on Canadian exchanges under the symbol USGD, or in the U.S. under USGDD.

The share price will likely have a temporary dip due to the financing. Many investors sell shares on the open markets to raise cash to buy into the placement. Be patient and don’t chase it. It will likely take a couple of weeks for the financing to close, giving us a window to buy.

Action to Take: