American Pacific Mining Announces Joint Venture with OceanaGold for USD$10Million and Other Corporate News
VANCOUVER, British Columbia, April 15, 2019 (GLOBE NEWSWIRE) -- American Pacific Mining Corp (CSE: USGD / FWB: 1QC / OTCPK: USGDF) (“APM” or the “Company”) is pleased to announce that it has entered into an earn-in agreement in respect of APM’s Tuscarora Gold Project with OceanaGold U.S. Holdings Inc., a US subsidiary of OceanaGold Corp. (TSX: OGC) (ASX: OGC). OceanaGold is an Australian-based, mid-tier mining company with numerous producing assets, including the largest producing gold mine in New Zealand, the Macraes Goldfield Mine.
Warwick Smith, CEO of APM, commented: “We are very pleased to partner with OceanaGold at Tuscarora. The company’s management and Board of Directors extend a warm welcome to the OceanaGold team as both sides work to add value to the project and define further drill targets across the large and historic land package. This announcement adds excitement to the project and the company as we enter a new exploration season. OceanaGold is the perfect partner in our eyes, especially with the success they have had at Waihi in New Zealand—a similar high-grade epithermal system. For a company of our size, this transaction is a big milestone.”
Eric Saderholm, President of APM commented: “A joint venture with a mid-tier producer, such as OceanaGold, adds to the merit of this high-grade, epithermal gold project. Nevada is the top investor-friendly jurisdiction for mining, and I look forward to working alongside the OceanaGold team as we move this gold discovery ahead at Tuscarora.”
Key Points of the Agreement
- OceanaGold can earn up to 51% of the Tuscarora Gold Project by investing USD$4 million over the next four years (Phase 1)
- OceanaGold will have sixty (60) days thereafter to exercise an option to earn an additional 24% by investing a further USD$6 million over the following four years (Phase 2)
- OceanaGold will make an initial cash payment of USD$50,000 to American Pacific and, upon OceanaGold earning a 51-per-cent interest in the property, a second payment of USD$200,000 in cash or shares at Oceana's option
- OceanaGold will also make all payments to holders of underlying property interests and pay claim fees
- OceanaGold will be the operator and, upon earning-in an interest, a joint venture management committee will be formed
About OceanaGold Corp.
OceanaGold Corporation is a mid-tier, high-margin, multinational gold producer with assets located in the Philippines, New Zealand and the United States. The Company’s assets encompass the Didipio Gold-Copper Mine located on the island of Luzon in the Philippines. On the North Island of New Zealand, the Company operates the high-grade Waihi Gold Mine while on the South Island of New Zealand, the Company operates the largest gold mine in the country at the Macraes Goldfield which is made up of a series of open pit mines and the Frasers underground mine. In the United States, the Company operates the Haile Gold Mine, a top-tier, long-life, high-margin asset located in South Carolina.
OceanaGold also has a significant pipeline of organic growth and exploration opportunities in the Americas and Asia-Pacific regions. OceanaGold has operated sustainably since 1990 with a proven track-record for environmental management and community and social engagement. The Company has a strong social license to operate and works collaboratively with its valued stakeholders to identify and invest in social programs that are designed to build capacity and not dependency. In 2019, the Company expects to produce between 500,000 to 550,000 ounces of gold and 14,000 to 15,000 tonnes of copper at All-In Sustaining Costs ranging between $850 and $900 per ounce sold.
The Company has entered into an arm's-length agreement with Future Money Trends, LLC and affiliates (FMT). FMT is headed by Kenneth Ameduri, a media specialist in the natural resources sector. The agreement is for a three year term. The Company paid US$250,000 and issued a total of 2,800,000 of its common shares in consideration for the consulting services.
The Company also entered into an arm's-length agreement with Capital Pearl Investments Inc. The agreement is for a 1 year term. The Company paid US$40,000 and issued a total of 1,000,000 of its common shares in consideration for the consulting services.
All of the above-noted consultant shares are subject to a four month hold period expiring on July 23, 2019.
The company has also granted stock options to purchase an aggregate of 1 million common shares at an exercise price of $0.28 per share for a five year term. The stock options, which were granted to consultants and directors of APM, are subject to the necessary regulatory approvals.
American Pacific Mining Corp. is a gold explorer focused on precious metal opportunities in the Western United States. Tuscarora is a high-grade, early stage gold project located in a prime precious metal district in Nevada, only 35km northeast of the Carlin trend, 20km southwest of the Jerritt Canyon deposit, and 50km east-northeast of the Midas deposit. American Pacific is Eyeing a Gold Discovery amidst gold’s next bull market.
On Behalf of the Board of American Pacific Mining Corp.
CEO & Director
Corporate Office: Suite 910 – 510 Burrard Street Vancouver, BC, V6C 3A8 Canada
Some statements in this news release contain forward-looking information (within the meaning of Canadian securities legislation) including, without limitation, statements as to planned exploration activities and the expected timing of the receipt of results. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such factors include, without limitation, customary risks of the mineral resource industry as well as the performance of services by third parties.
Forward-looking statements are statements that are not historical facts; they are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur, or are those statements, which, by their nature, refer to future events. The Company cautions that Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made and they involve a number of risks and uncertainties. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.