Additional payments expected
Aston Bay Holdings (TSX.V: BAY, FSE: 6AY, WKN: A2AUFP) has received an initial payment of 1.38 million Canadian dollars (CAD) for the Storm copper project on Somerset Island in the Canadian province of Nunavut. Which represents non-dilutive financing that the company can utilize at its discretion.
Under an agreement between Aston Bay, joint venture partner American West Metals and TMRF Canada, a subsidiary of Taurus Mining Royalty, TMRF Canada will support the development of the Storm project with funding of up to CAD 17.3 million.
The payments are split between the two partners, Aston Bay Holdings and American West, in line with the 20/80 joint venture that both entered into for the development of the Storm project. Of the total amount of up to CAD 17.3 million, Aston Bay Holdings will therefore receive a total of CAD 3.46 million. This is the equivalent of EUR 2.32 million.
The first payment of CAD 1.38 million or the equivalent of EUR 920,000 will now be made. Aston Bay Holdings is not subject to any restrictions on the use of the funds. A further CAD 4.9 million will become due as soon as a preliminary feasibility study for the Storm copper project is submitted.
The financing has already accelerated the development of the Storm copper project this year.
If a resource of at least 400,000 tonnes of copper at a resource grade of at least 1.00% copper is delineated according to the Australian JORC standard, a further payment of C$5.5 million will be made by TMRF Canada to the two partners.
The financing has already enabled American West to expand its exploration and development activities this year. The 2024 drill programme has been expanded and field activities for 2025 have also been planned on a larger scale. The fact that the bulk deliveries can be transported to the project by chartered ship will have a positive impact here. This step will save approximately four million CAD in costs for the 2025 exploration programme.
Other activities supported by the TMRF Canada payments include the various environmental, mining and development studies currently in progress. These also include extensive test work to assess the potential for direct shipping of ore. The results of these studies are expected in early 2025.
American West’s development of the Storm Copper Project is highly satisfactory to Aston Bay, with the partner driving the work forward purposefully and committed to achieving the two remaining milestones in the agreement with TMRF Canada over the next six to twelve months. This could result in Aston Bay Holdings receiving an additional C$2 million in funding to be used for the further development of its own projects.
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