USGD Closes Dowa Deal = $10M & 100% Interest in PalmerToday, American Pacific Mining (USGD.c USGDF) Gained USD$10M and 100% Interest in Palmer VMS Project in Alaska
Today, American Pacific Mining (USGD.c USGDF) announced the completion of its acquisition of Dowa Metals & Mining interest in the holder of the Palmer VMS Project in Southeast Alaska.
Under the agreement, USGD acquired Dowa's stake, while Dowa paid $10 million for an option to purchase up to 50% of the zinc concentrate produced annually from the project.
Notably, the transaction consolidates American Pacific's 100% ownership of the Palmer Project, enabling the company to advance exploration and resource development.
With this, USGD will now have over CAD $16 million in cash and two 100% owned flagship projects, the Palmer VSM Project in Alaska and the Madison Copper-Gold Project in Montana.
The Palmer VMS Project
The Palmer VMS Project is an advanced-stage copper-zinc-gold-silver exploration initiative with road access and proximity to the port of Haines, Alaska.
The project boasts a 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, however, only 4 of 16 showings are in the resource estimate, hinting at significant growth potential for the updated mineral resource estimate (MRE) that is currently underway and expected in Q1 2025.
Over $116 million has been invested into the project thus far, with significant NI-43-101 mineral resources already defined.
Plus, recent drilling has identified high-grade copper zones and numerous drill-ready prospects across a 15-kilometer mineral trend, indicating strong potential for further resource expansion.
With 100% control, USGD will be shifting the project's focus from zinc toward a copper resource that has 50M tonne potential with significant room to grow and create value with this transaction.
Emphasizing the pivotal moment this transaction marks, USGD's CEO, Warwick Smith commented:
"We've now obtained full ownership of a project with proven mineral resources and vast untapped regional discovery potential, while also securing substantial funding to ramp up exploration of key assets across our portfolio, paving the way for significant resource growth."
Full News Release:
https://americanpacificmining.com/news-releases-2024/american-pacific-closes-transaction-to-gain-usd10m-and-100-interest-in-the-palmer-vms-project/ Posted on Behalf of American Pacific Mining Corp.