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Aston Bay and American West Metals Announce C$17.1 Million Royalty Package for the Storm Copper Project, Canada
Non-dilutive financing secured from leading royalty fund to support exploration and development a...
About this update from Aston Bay Holdings Ltd.
[{"type":"text","content":"Aston Bay and American West Metals Announce C$17.1 Million Royalty Package for the Storm Copper Project, CanadaNon-dilutive financing secured from leading royalty fund to support exploration and development at StormC$3.425 million allocated to Aston Bay with no use of proceeds restriction TORONTO, ON / ACCESSWIRE / June 24, 2024 / Aston Bay Holdings Ltd. (TSXV:BAY)(OTCQB:ATBHF) (\"Aston Bay\" or the \"Company\") is pleased to announce that its joint venture partner American West Metals Limited (\"American West\") has entered into a binding agreement with Australian-based Taurus Mining Royalty Fund L.P. (Taurus) whereby Taurus will provide funding of up to US$12.5 million (C$17.1 million[1]) under a royalty package for the Storm Copper Project. Aston Bay and American West have formed a 20/80 unincorporated joint venture in respect of the Storm Project property, with Aston Bay maintaining a free carried interest until a decision to mine upon completion of a bankable feasibility study. Aston Bay will be allocated 20% of the funding from the royalty package (C$3.425 million) with no use of proceeds restriction.HighlightsBinding agreement entered with Taurus Mining Royalty Fund L.P. (Taurus) to provide US$12.5 million (C$17.1 million1) in exchange for a royalty package over the Storm Copper ProjectThe following funding will be advanced by Taurus:US$5m (C$6.85m) upon signing of formal documentation and financial closeUS$3.5m (C$4.80m) upon delivery of a PFS for Storm and submission of permitting documents for a development at StormUS$4m (C$5.48m) upon announcement of an increase in the JORC compliant resource for Storm to at least 400,000 tonnes of contained copper at a resource grade of at least 1.00% CuTaurus will be granted a new 0.95% gross override royalty (GOR) from all production at StormFunding under the royalty package will be allocated to American West Metals and Aston Bay Holdings in accordance with their respective interests under the unincorporated joint venture for Storm, being 80% for American West Metals and 20% for Aston Bay HoldingsAmerican West Metals will use its proceeds from the royalty funding to:Accelerate the Storm 2024 resource expansion and exploration programs, with the 20,000m summer drilling program now underwayBring forward the logistics for the 2025 field activities with supplies delivered to site via s...