Palmer Agreement Webinar SummaryWebinar Summary: American Pacific Mining (USGD.c USGDF) Receives US$10M and 100% Interest in Palmer VMS Project From Dowa Metals Today, American Pacific Mining (USGD.c USGDF) held a webinar to discuss its agreement to acquire Dowa Metals & Mining's interest in the Palmer VMS Project in Alaska.
Transaction Highlights:
- Consolidates 100% ownership of the Palmer Project under USGD with Dowa paying USGD USD$10M
- USGD will have over CAD $16 million in cash and two flagship projects: Palmer (Alaska) and Madison (Montana).
- Dowa receives 50% option on future zinc concentrate production
- An updated mineral resource estimate (MRE) is underway, focusing on exploration and resource expansion.
- Deal is expected to close in Q4 2024.
Palmer JV Background
- Differing corporate priorities: Dowa's priority was always the zinc concentrate
- Dowa saw a 14M resource and wanted to get it into production while USGD saw the potential for a massive VMS project
- Only 4 of 16 showings are in resource estimate, hinting at significant growth potential
- Total consolidated mineral resource of 4.68 million tonnes of 10.2% zinc equivalent indicated & 9.59 million tonnes of 8.9% zinc equivalent inferred
- 50M tonne potential
- USGD will be shifting the focus from zinc to a copper resource
Way Forward
- 100% control allows for shift in focus to resource expansion
- Updated MRE incorporating the recent high-grade intersections is underway and expected in Q1 2025
- Based only on Palmer, USGD is trading at 85% discount to peers
- Significant room to grow and create value with this transaction due to the renewed focus on Palmer's significant exploration upside
Corporate snapshot
- USGD now owns 100% of both Palmer and VMS and will have more than CAD$16M
- What's Next?
- Palmer: Updated MRE, potential transaction as it's seen as a standalone project
- Madison: Drilling in January, first of three phases of drilling is completed
- Will aggressively be moving Madison toward new resource with increase in cash
- May spin-out or transact other assets
- Heavy news period incoming
Marking a significant influx of cash, Warwick Smith emphasized that this is a big day for USGD given the company now has $16M in cash and full control of two major assets; a strong position to be in in a tough market.
Viewing this as a transformative move, strengthening its financial position and exploration capabilities, Warwick Smith additionally emphasized the strategic value of the acquisition, stating:
"This is a transformative transaction for American Pacific. American Pacific receives a significant injection of capital and 100%-control of a Project that has an established mineral resource with significant exploration upside throughout the district."
"An updated mineral resource estimate (MRE) is underway, and this transition consolidates ownership and provides a clear path forward with a renewed focus on advanced exploration and resource expansion, which we believe will create significant value for a Project that currently includes a small fraction of the known VMS showings in the current MRE."
Full News Release:
https://americanpacificmining.com/news-releases-2024/american-pacific-receives-us10-million-and-100-interest-in-the-palmer-vms-project/ Posted on Behalf of American Pacific Mining Corp.