American Waste to Pocket $18 Million in Royal Funding

SEATTLE (Scrap Monster): American West Metals (ASX:AW1) has signed a formal agreement with Taurus Mining Royalty Fund subsidiary TMRF Canada for up to US$12.5 million ($18.33 million) under a royalty package for the Storm Copper Project in Canada. 

Under the definitive agreement, American West will receive the first payment of US$5 million this week. The balance will be provided upon completion of registration of the royalty at the Nunavut Mining Recorder’s Officer, which is expected within two to three weeks. 

Two further payments of US$3.5 million and US$4 million will be paid upon delivering a Prefeasibility Study (PFS) for the Storm Project and submitting permitting documents for development, as well as announcing an increase in the project’s resource estimate to at least 400,000 tonnes of contained copper at a grade of at least 1% copper. 

American West, which has a market capitalisation of $50.78 million, says the funding has enabled an expansion of exploration and development activities at Storm. 

These activities include expanding the 2024 drilling program with more than 22,000m of drilling completed to date, an investment in the 2025 field activities with bulk supplies being delivered to site this week by ship charter, and completing environmental, mining, and development studies. 

American West adds that the environmental, mining, and development studies will include detailed testwork that supports the potential for a direct shipping ore operation, which will support the delivery of a PFS in early 2025. 

 Courtesy: www.mining.com.au