American Pacific Mining Corp C.USGD

Palmer Agreement Webinar Summary

[MarketMakerss]

Webinar 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.