This deal comes right before this year's
exploration season.
American
Pacific Mining Corp. (USGD:CSE; USGDF:OTC) announced in a news release it entered into an agreement with OceanaGold
U.S. Holdings Inc., allowing it to earn into its Tuscarora gold project in
Nevada. OceanaGold U.S. Holdings Inc. is the U.S. subsidiary of the
multinational OceanaGold Corp.
"For a company of our size, this transaction is a big
milestone," American Pacific's CEO Warwick Smith said in the release.
According to the agreement, OceanaGold can earn up to 51% of the Tuscarora
high-grade epithermal project by investing $4 million into it over the next
four years. At that point, a joint venture management committee will be
created. Also, OceanaGold may earn an additional 24% into Tuscarora by
investing $6 million more over the following four years; the company has 60
days in which to exercise that option.
In addition, OceanaGold will pay American Pacific $50,000 upfront and
$200,000 upon earning a 51% percent in Tuscarora, in both instances in cash
or shares, whichever the payor prefers. OceanaGold will make all payments to
holders of underlying property interests and for claim fees.
Whereas OceanaGold will be the operator of Tuscarora, both companies will
work toward adding value to the project and identifying further drill targets
on the expansive land package.
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