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American West Metals Limited (ASX:AW1)

ALERT: Price-sensitive ASX Announcement for AW1
Current share price for AW1 : $0.032 -0.066 (-67.35%)+
Announcement
Release
23 Sep 2024 8:34AM
Price at Release
$0.098
Full Release
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Summary
American West Metals Limited has secured US$12.5 million (A$18.8 million) in royalty funding from Taurus Mining Royalty Fund for the Storm Copper Project in Canada. The initial payment of US$5 million will be accessed soon, with additional payments tied to project milestones. The funding will support expanded exploration and development activities, including a significant drill program and environmental studies. The Storm Copper Project, located on Somerset Island, has a maiden resource estimate of 17.5Mt @ 1.2% Cu. The project shows significant potential for resource growth with recent high-grade copper discoveries.
Key Points
  • American West Metals Limited (American West) has signed an agreement with TMRF Canada Inc., a subsidiary of Taurus Mining Royalty Fund L.P. (Taurus), for US$12.5 million (A$18.8 million) in royalty funding for the Storm Copper Project.
  • The first payment of US$5 million will be made soon, with US$1 million advanced this week and the balance provided upon registration of the royalty at the Nunavut Mining Recorder’s Office.
  • Additional payments under the royalty package include US$3.5 million upon delivery of a Prefeasibility Study (PFS) and submission of permitting documents, and US$4 million upon announcement of an increase in the JORC compliant resource.
  • American West Metals and Aston Bay Holdings will share the funds under the royalty package according to their joint venture interests (80% for American West and 20% for Aston Bay Holdings).
  • The funding will enable expanded exploration and development activities, including an expanded 2024 drill program, investment in 2025 field activities, and completion of environmental, mining, and development studies.
  • The Storm Copper Project is located on Somerset Island, Nunavut, Canada, and covers over 2,200 square kilometers.
  • American West delivered a maiden independent JORC Code - 2012 Indicated and Inferred Mineral Resource Estimate for the Storm Project in January 2024, consisting of 17.5Mt @ 1.2% Cu and 3.4g/t Ag.
  • The shallow copper mineralization within the Storm Deposits is open in all directions, with significant potential for resource growth.
  • High-grade copper discoveries at Thunder, Lightning Ridge, Cyclone North, and Cyclone Southwest present immediate opportunities for resource expansion.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.