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Aston Bay Enters into Option Agreement with American West Metals Limited for the High-Grade Storm Project
TORONTO, ON / ACCESSWIRE / March 9, 2021 / Aston Bay Holdings Ltd. (TSXV:BAY)(OTCQB:ATBHF) (...
About this update from Aston Bay Holdings Ltd.
[{"type":"text","content":"Aston Bay Enters into Option Agreement with American West Metals Limited for the High-Grade Storm ProjectTORONTO, ON / ACCESSWIRE / March 9, 2021 / Aston Bay Holdings Ltd. (TSXV:BAY)(OTCQB:ATBHF) (\"Aston Bay\" or the \"Company\") is pleased to announce that it entered into an option agreement (the \"Option Agreement\") with American West Metals Limited (\"AWML\"), a private Australian company, and Tornado Metals Ltd. (\"American West\"), a wholly-owned subsidiary of AWML, on March 9, 2021, pursuant to which American West has an option (the \"Option\") to earn an 80% interest in Aston Bay's 100% owned property located on western Somerset Island, Nunavut which hosts the high-grade Storm Copper Project and the high-grade Seal Zinc Deposit (the \"Storm Project\").SummaryAmerican West enters into the Option Agreement to earn an 80% interest in the Storm ProjectC$10 million expenditure required over a period of up to nine years, including a minimum C$2 million over first two field seasonsC$500,000 cash payment to Aston Bay on closingThomas Ullrich appointed to the Advisory Board of American WestPlanning is underway for the summer 2021 field season, expected to include surface geophysics and potential drilling; camp and equipment are already in placeHighlights of the Option AgreementUnder the terms of the Option Agreement, American West can earn an 80% undivided interest in the Storm Project by spending a minimum of C$10 million on qualifying exploration expenditures (\"Expenditures\") over a period of up to nine years.American West will make a cash payment of C$500,000 to Aston Bay on closing under the Option Agreement and grant of the Option. In addition, in order to exercise the Option, American West must incur not less than C$2 million in Expenditures during the first two consecutive field seasons (2021 and 2022 if closing occurs on or before July 31, 2021 and 2022 and 2023 if closing occurs after July 31, 2021) (the \"First Commitment\") and not less than C$8 million in Expenditures during the subsequent earn-in period, which is the seven consecutive field seasons after satisfaction of the First Commitment.Closing and grant of the Option is subject to the satisfaction of certain conditions precedent, including approval of the TSX Venture Exchange, which approval is subject to the receipt of approval by Aston Bay's shareholders. S...