Aston Bay’s partner American West Metals has succeeded in engaging Ocean Partners, an experienced and globally leading provider in the development of copper projects, for the Storm Copper Project in the Canadian province of Nunavut. Ocean Partners will therefore participate in financing the project development and also agrees to purchase ores mined at Storm. Aston Bay (TSX.V: BAY, FSE: 6AY, WKN: A2AUFP), which continues to hold 20% of the Storm project, will also benefit from this partnership.

The agreement concluded between American West and Ocean Partners Holdings to finance the Storm project stipulates that Ocean Partners will provide up to 80% of the initial capital required for the project’s development. Additionally, the already involved Taurus Mining Royalty has agreed to advance the second tranche of an agreed royalty payment.

The Storm Copper Project will continue to be a 20/80 unincorporated joint venture. While American West holds 80 percent of the shares and is the responsible project operator, Aston Bay holds a 20 percent stake. It is not associated with any further costs for the time being, as these will only be incurred once a bankable feasibility study is available and a decision on mining has been made.

Until that point, Aston Bay benefits from all positive developments without having to bear costs or provide exploration services. Moreover, this comfortable position even comes with revenue that Aston Bay Holdings can freely dispose of, while American West is obligated to invest these funds in the further development of the Storm project.

Ocean Partners Secures the Purchase of Ores from Storm for Direct Shipping

The agreements made between American West and Ocean Partners thus also benefit Aston Bay Holdings, as they further advance the Storm Copper Project. The Storm project itself takes an important step towards copper production thanks to this cooperation, as Ocean Partners will not only provide capital in the form of a senior secured loan facility for the construction of the mine infrastructure, but also secures the purchase of copper and silver products to be obtained from Storm in the future, as calculated in a preliminary economic assessment.

This detail of the concluded agreement should not be underestimated, as Ocean Partners is entering into long-term commitments with its pledge. The company would never burden itself with such obligations if it were not convinced that the ores mined at Storm are so rich and lucrative that their direct shipping to processing facilities and smelters will be worthwhile.

As an experienced project developer, Ocean Partners not only provides loans but also brings in its technical know-how and expertise in the copper market. As the development of the project and the mining of near-surface ores are thus drawing significantly closer, Taurus Mining Royalty has also agreed to advance the second tranche of the royalty amounting to 3.5 million US dollars, so that the payment will largely be made this month.

Aston Bay Receives Fresh Funds of 996,000 CAD Which It Can Freely Dispose Of

Aston Bay Holdings will be allocated 20 percent of the funds from the royalty, which is 996,000 Canadian Dollars (CAD), without any restrictions on the use of the proceeds. American West receives the rest of the royalty to advance the Storm project.

The partners’ envisaged further development of the Storm project is to proceed in three directions: Exploration efforts are to be expanded. American West will sink new drill holes to expand the project near the already identified mineralizations intended for later mining. New regional expansion targets are also to be explored.

A major focus of the work will be the preparation of the preliminary feasibility study (PFS). Hand in hand with this, the necessary permits will be obtained. These concern both the mining permit and the permission to expand the project. As a third completely new, but at the same time very important focus, the early securing of processing and mining equipment and the commissioning of subcontractors on the project are added.

Through the collaboration with Ocean Partners, American West has apparently succeeded in finding the right partner for the final phase of the Storm project’s development, as Ocean Partners operates globally through strategic offices, agencies, and partnerships. The company has extensive experience in mining, geology, metallurgy, and finance, and also possesses comprehensive knowledge of direct shipping ore (DSO) markets. Since this sales channel will most likely be chosen for the Storm project, the cooperation with Ocean Partners could soon prove to be a stroke of luck for Storm.