USGD's Transformative Palmer VMS Project Acquisition & More Peter Grandich, a prominent financial commentator with extensive experience in the resource sector, recently shared his thoughts on American Pacific Mining (USGD.c or USGDF for US investors) in a video update.
Grandich highlighted the company’s recent acquisition of the Palmer VMS Project in Alaska, emphasizing its growth potential and strategic significance.
American Pacific Mining recently completed the acquisition of Dowa Metals & Mining Alaska Ltd.'s interest in the Palmer VMS Project, securing full ownership of this advanced copper-zinc-gold-silver exploration project.
This deal also included USD$10 million in funding from Dowa, with the agreement granting Dowa the option to purchase up to 50% of the zinc concentrate from any future production. The project is situated 60km from the port at Haines in Southeast Alaska and boasts NI 43-101 compliant resources of 14.27 million tonnes of mineralized material, with indicated resources totaling 4.68 million tonnes at 10.2% zinc equivalent and inferred resources of 9.59 million tonnes at 8.9% zinc equivalent.
To date, over USD$116 million has been invested in exploration at Palmer. A 2019 Preliminary Economic Assessment (PEA) outlined a low-capex, high-margin underground mining operation with a post-tax NPV (7%) of USD$266 million.
Grandich described the acquisition as transformative, emphasizing the management's skill in negotiating favorable terms. He outlined three potential paths for the Palmer Project's future: developing it internally, forming a partnership with an experienced Alaskan mining company, or selling the project outright.
Of these options, Grandich expressed a preference for a sale, which he believes could generate USD$20–25 million—representing a significant proportion of the company’s current market capitalization.
A decision regarding the project’s future direction is anticipated ahead of major industry conferences in early 2025.
In addition to the Palmer Project, American Pacific Mining holds other strategic assets, including the Madison copper-gold project in Montana and three high-grade gold and silver properties in Nevada: Ziggurat, Gooseberry, and Tuscarora.
With USD$10 million in funding secured from the Palmer transaction, the company is well-positioned to advance exploration activities across its portfolio.
Full video here: https://youtu.be/hFqzgY4BigM
Posted on behalf of American Pacific Mining Corp.