American Pacific Mining Corp. (USGD:CSE) begins trading on the Canadian Securities Exchange (CSE) on March 8; the ticker symbol is USGD. The new company has optioned NOVO Resources' Tuscarora property in Nevada.
Tuscarora consists of 24 unpatented BLM lode mining claims and is located 50 miles north of Elko, Nevada. The project is positioned between two major gold trends, Carlin and Jerritt Canyon.
Drilling that NOVO Resources conducted in 2016 at Tuscarora found high grades, including 3.1m @ 74.18 g/t gold and 1.5m @ 143.50 g/t gold.
With many industry observers noting that NOVO Resources' project in Australia has the potential to be a massive, Witwatersrand-type deposit, that company's focus has remained Down Under, and it optioned Tuscarora to American Pacific Mining.
The terms of the option agreement to acquire 100% of the property are:
- Make cash payments to NOVO Resources of CA$375,000
- Deliver shares of American Pacific Mining Corp. stock equivalent to CA$200,000
- Complete US$100,000 per year in expenditures on the property
After that, American Pacific Mining will pay a royalty to NOVO Resources of 0.5% of net smelter returns; this can be reduced to zero by paying US$500,000. American Pacific Mining will also pay a royalty to Nevada Select Royalty Inc. of between 2% and 4%, depending on the price of gold.
Dr. Quinton Hennigh, president and chairman of NOVO Resources, stated: "We believe that Tuscarora is a quality asset with promising mineralization. We look forward to seeing American Pacific Mining further develop the project and we are excited to participate in its true potential as shareholders of American Pacific Mining."
American Pacific Mining is helmed by an experienced team. Warwick Smith, CEO and director, is a venture capitalist who co-founded and led Western Pacific Resources Corp. Eric Saderholm, president and director, is the former Western U.S. Exploration Manager for Newmont and is an Elko-based geologist. Director Ken Cunningham has over 40 years of experience in mineral exploration, including 12 years as the president and CEO of Miranda Gold Corp.
Eric Saderholm, American Pacific Mining's president and director, noted that "American Pacific will build upon previous exploration work and use the most modern geophysical and drilling techniques to test this exciting, promising district. It was the potential of this project and the tight structure and commitment of American Pacific Mining that lured me into leaving a quality position with Newmont Mining. There is an upcoming emergence of profitable, mid-tier mining companies and we will be leaders in the exploration space as this trend continues."
American Pacific Mining has approximately 33 million shares outstanding. The IPO round was done at $0.25 with a half warrant at $0.35 (one year). The company has approximately $3 million in cash.
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