USGD.c Acquires Full Ownership of Palmer VMS Project Last week, American Pacific Mining Corp. (Ticker: USGD.c or USGDF for US investors) shared that it has successfully entered into a transformative agreement with Constantine North Inc. (CNI) and Dowa Metals & Mining Alaska Ltd. (Dowa), acquiring full 100% ownership of the Palmer VMS Project in Alaska, a critical move for the company’s growth.
This agreement sees Dowa paying US$10 million to American Pacific in exchange for the right to purchase up to 50% of the zinc concentrate produced from the project’s first year and all subsequent years of production.
This acquisition, expected to close by the end of 2024, not only grants American Pacific full control of a high-potential copper-zinc-gold-silver exploration asset but also provides a solid cash infusion.
Located just 60 kilometers from the deep-water port of Haines, the Alaska-based Palmer VMS Project is an advanced-stage, high-grade copper-zinc asset with substantial exploration potential across its district-scale land package.
Recent drilling has confirmed the presence of rich mineralization, including an impressive 18m intercept averaging 1.5% copper, 5.4% zinc, 0.4 g/t gold, and 59.1 g/t silver (4.4% CuEq).
With over US$116 million already invested in the project, the Palmer Project hosts an established NI-43-101 mineral resource, and further exploration is expected to define rich copper zones.
The acquisition of full ownership and control over Palmer positions American Pacific to advance exploration and resource expansion, unlocking further value for shareholders.
In addition to the Palmer VMS Project, American Pacific holds the Madison Project in Montana, a past-producing copper-gold asset with considerable exploration upside.
The project has already produced 2.7 million pounds of copper grading 20-35% and 7,570 ounces of gold at 16.1 g/t.
To date, American Pacific has drilled approximately 54,000 meters at Madison, with plans for an additional 20,000 meters of drilling over the next 18 months, beginning in January 2025.
This extensive drill program aims to establish a formal resource estimate for the project, which could further unlock its value.
With a strengthened balance sheet of over CAD$16 million in cash and full ownership of both the Palmer and Madison flagship assets, American Pacific is well-positioned for aggressive exploration and strategic expansion.
Full news here: 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.