American Pacific receives 100% interest in the Palmer Project in Alaska

Pursuant to the terms of the Purchase Agreement executed 15 November 2024, CNI, a wholly-owned subsidiary of American Pacific, will acquire the Dowa Interest from Dowa and Dowa will pay US$10 000 000 to American Pacific in exchange for providing Dowa with an option to acquire up to 50% of the zinc concentrate produced at the Project for the initial year of production and each subsequent year of production at the Project and the provision of certain indemnities in the Purchase Agreement. The completion of the transactions contemplated by the Purchase Agreement are subject to customary conditions precedent in favour of American Pacific, CNI, and Dowa. Following the acquisition of the Dowa Interest, American Pacific will have consolidated a 100%-interest in the Project. American Pacific has thanked Dowa for its collaborative approach to work at Palmer over the years. Given the differing corporate priorities of Dowa and American Pacific, the company is pleased to have regained 100%-ownership and control of Palmer.

Warwick Smith, American Pacific’s Chief Executive Officer stated:

“This is a transformative transaction for American Pacific. American Pacific receives a significant injection of capital and 100%-control of a Project that has an established mineral resource with significant exploration upside throughout the district.”

“An updated mineral resource estimate (MRE) is underway, and this transition consolidates ownership and provides a clear path forward with a renewed focus on advanced exploration and resource expansion, which we believe will create significant value for a Project that currently includes a small fraction of the known VMS showings in the current MRE.”

Read the article online at: https://www.globalminingreview.com/mining/19112024/american-pacific-receives-100-interest-in-the-palmer-project-in-alaska/