American Pacific Mining Signs Letter of Intent to Purchase Broadway Gold’s Interest in the Madison Cu-Au Project Under Option with Rio Tinto
VANCOUVER, British Columbia, Jan. 27, 2020 (GLOBE NEWSWIRE) -- American Pacific Mining Corp (CSE: USGD / FWB: 1QC / OTCPK: USGDF) (“APM” or the “Company”) is pleased to announce the company has
signed a Letter of Intent with Broadway Gold Mining whereby it was granted the exclusive right to negotiate a definitive agreement with Broadway and certain of its subsidiaries to acquire
Broadway’s interest in the Madison Copper Gold Project in Montana, USA.
The project is currently subject to an Earn-In with Option to Joint Venture Agreement (the “Earn-in Agreement”) with Kennecott Exploration Company, part of the Rio Tinto Group (ASX, LON: RIO), as announced by Broadway on April 30, 2019 (a link to the press release can be found here http://tiny.cc/dz2siz). Kennecott Exploration Company is not a party to the Letter of Intent or the proposed transaction between APM and Broadway.
The CEO of American Pacific, Warwick Smith, commented: “The opportunity to acquire the fully-permitted, past-producing Madison Copper Gold Project will strengthen the portfolio with a porphyry/skarn project that has already been evaluated and transacted upon by a major.”
There is no guarantee that the parties will be able to finalize a definitive agreement. It is expected that any such definitive agreement would be subject to a number of conditions, including the receipt of all required regulatory, corporate and stock exchange approvals, the completion of the Arrangement and any required shareholder approvals. The exclusivity obligations described above automatically terminate if Broadway’s previously announced plan of arrangement with Mind Medicine, Inc. does not close. Even if a definitive agreement is executed there can be no assurances that the parties will be able to complete such a transaction.
About the Madison Copper Gold Project:
The Madison Copper Gold Project is located in the heart of Montana’s prolific copper-gold belt only 38km southeast of the world-renowned Butte Mining District. The project, a high-grade Cadia-like skarn over porphyry system, encompasses 2,514 acres consisting of six patented lode claims and 108 unpatented mineral claims. Targets outlined in 2017 cover a two-mile-long by one-mile-wide zone of geophysical, geological and geochemical indicators. The project is permitted for mining, surface and underground exploration, and it encompasses two past-producing underground mines called the Broadway and Madison mines.