American Pacific Mining Corp. (APM), a gold explorer focused on valuable metal opportunities in the Western U.S., has recently announced that it has entered into an earn-in agreement with OceanaGold U.S. Holdings Inc., the U.S. arm of OceanaGold Corp., in respect to its Tuscarora Gold Project.
For the uninitiated, OceanaGold is an Australian-based, mid-tier mining firm with several producing assets, including the largest producing gold mine, the Macraes Goldfield Mine, in New Zealand.
According to reliable sources, OceanaGold, under the agreement, is likely to earn up to 51% of the Tuscarora Gold Project by pumping $4 million in to it over the next four years. Moreover, the firm will have 60 days afterward to exercise an option to earn an additional 24% by pouring a further $6 million over the following four years.
In addition, OceanaGold will make an opening cash payment of $50,000 to APM and, upon earning a 51% interest in the property, will make a second payment of $200,000 in cash or shares at Oceana’s option. Furthermore, it will make all expenses to holders of property interests and pay claim fees, cite sources.
Commenting on the move, Warwick Smith, CEO, APM, said that the company is pleased to partner with OceanaGold at Tuscarora. He said that their firm’s Board of Directors and management extend a warm welcome to the OceanaGold team as both parties work to offer value to the project and define further drilling goals across the large and historic land package. Smith claims that OceanaGold is an ideal partner, especially after speculating their success at Waihi in New Zealand.
As per a statement, Eric Saderholm, President, APM, said that a JV with a mid-tier producer like OceanaGold will add worth to this high-grade, epithermal gold project. He said that Nevada is the leading investor-friendly mining jurisdiction, and the firm is looking forward to collaborating with OceanaGold’s team as it moves this gold discovery further at Tuscarora.