Ocean Partners Holdings Ltd, a globally active metal trading, technical consulting and financing company, positioned itself some time ago to be able to cooperate with the Australian copper explorer American West Metals (WKN A3DE4Y / ASX AW1) in Nunavut. Now, among other things, a binding purchase agreement has been concluded for the ore produced at Storm in the future.
Ocean Partners wants to gain access to American West’s Storm copper project, which, as a DSO operation appears possible, could potentially go into operation in a very fast two to three years for the industry.
The previously reported agreement has now been definitively concluded and grants Ocean Partners the right to acquire 100% of all copper, silver and gold products presented in the base scenario of the recently published preliminary economic assessment (PEA). The term of this agreement is limited to eight years or the resource extent from the PEA, whichever is longer.
The definitive conclusion of the agreement represents an important milestone in the partners’ cooperation, but is only part of the collaboration, as Ocean Partners will also provide up to 80% of the initially required investment capital (CAPEX) via a senior secured loan facility.
American West Metals Receives USD 2 Million in Fresh Capital from Ocean Partners
In the short term, Ocean Partners has also provided American West with fresh capital of USD 2 million via a private placement. The shares due have now been issued, so that Ocean Partners now holds a 9.4% stake in American West.
However, the relationship is not limited to financial matters. American West is already beginning to benefit from the partner’s know-how and, according to the company, the strategic alliance is already having initial positive effects. Activities for the development and optimization of processing are already underway!
American West’s Managing Director Dave O’Neill explains:
“We are very pleased to announce that Storm’s strategic alliance partners continue to reach important milestones in the recently announced financing package for the Storm copper project.
Both the private placement and the purchase agreement have now been concluded, which significantly reduces the risk of the short- and long-term financing strategy for the project. The financing package will enable American West to complete the dual strategy of exploration and streamlined development in 2025.
American West’s ability to attract global companies such as Ocean Partners as partners speaks to the high quality of the project and the management team and underscores the low-risk path to potential development. Ocean Partners’ existing experience with ore sorting and DSO copper products is a natural complement to Storm, and the partnership has already begun to influence and optimize the technical aspects of the processing flow for ongoing PFS activities.
Exploration and development activities at Storm continue and we look forward to regularly providing investors with news.”
