American West Metals (ASX:AW1) has secured $2 million through a private placement from privately held Ocean Partners as a part of a financing and offtake deal to advance the Storm Copper Project.
Ocean Partners now holds 9.4% shareholding in the company, bolstering the partnership towards a binding offtake agreement that has now been executed.
The group has retained 100% of the rights over the base copper, silver, and gold produced at said project.
The agreement will bring Ocean Partners up to eight years of production rights and the defined project resource life indicated in its preliminary economic assessment.
After completing a Bankable Feasibility Study, Ocean Partners will finance up to 80% of the capital required to develop the project using a secured loan facility.
Managing Director Dave O’Neill says the company is pleased with the milestones completed between both partners within the financing and offtake deal.
“The funding package will allow American West to complete the dual strategy of exploration and streamlined development during 2025,” O’Neill says.
“American West’s ability to attract and partner with global companies like Ocean Partners speaks volumes to the high-quality of the project and the management team, and emphasises the low-risk pathway to potential development.
“Ocean Partners’ existing experience with ore-sorting and direct shipping ore copper products is a natural fit with Storm and the partnership has already begun to impact and streamline the technical aspects of the processing work flow for the ongoing Prefeasibility Study activities.”
American West currently holds 80% interest in the Storm Copper Project, with Aston Bay Holdings (ASX:BAY) holding the remaining 20%.
Located on Somerset Island in Canada, the project spans more than 2,200km2 of the Polaris mineral district.
Write to Maddison Elliott at Mining.com.au
Images: American West Metals
