Madison Metals and American Pacific Mining Corp (“APM” or the “Company”) is pleased to announce the company has signed a definitive agreement with Madison Metals to acquire the Madison Copper Gold Project near Silver Star Montana, USA. The project is currently under an earn-in, joint venture agreement announced by Broadway Gold on April 30, 2019, whereby Kennecott Exploration Company, part of the Rio Tinto Group (ASX, LON: RIO) may spend $30 million USD to earn up to 70% of the project.
Drill results from Kennecott’s 2019 drill program are pending and should be released shortly.
Highlight intervals from the 2017 drill program include the following:
- UG17-05: 24.5 g/t Gold over 30m (from 8.2m)
including 68.6 g/t Gold over 4.6m (from 22.8m)
and 82.9 g/t Gold over 2.7m (from 9.1m)
- UG17-06: 41.7 g/t gold over 11m (from 8.2m)
including 51.8 g/t gold over 4.6m (from 9.1m)
- C17-13: 6% copper over 4.6m (from123.4m)
Including 11.45% copper over 1.8m (from 124.4m)
For more details on the drilling please see this page for more info: https://americanpacific.ca/projects/madison-cu-au-project/
APM will also roll back its shares in tandem with this announcement, three for one (3 for 1). An updated share structure will be available on the website post consolidation.
Key terms of the Broadway/APM Madison Transaction
- APM will issue 20 million APM shares to Madison Metals post-consolidation (subject to a 6 month hold period in escrow)
- APM will issue 5 million APM warrants priced at $0.25 to Madison Metals post-consolidation (18 month expiry)
- Madison Metals will add one member to the APM Advisory board
Terms listed are subject to shareholder approval. Once completed the APM securities will be distributed pro-rata to the Madison shareholders.
“We are very excited to acquire Madison’s interest in the fully-permitted, past-producing Madison Copper Gold Project, under option to Kennecott Exploration Company, part of the Rio Tinto Group,” commented Warwick Smith, CEO and Director of APM. “Our corporate strategy is to build a portfolio of high-grade properties in the Western USA that will attract mid-tier partners to come in and help advance these assets. Madison certainly fulfils this objective and complements our growing portfolio of gold, silver and now copper assets as well.”
Madison is a great acquisition for APM. The project has infrastructure, power, roads, 3000 feet of underground development, recent production and plenty of exploration potential. This high-grade project includes two underground mines, the Broadway and the Madison Mines, plus two distinct geological targets: a high-grade gold skarn and a deeper copper gold porphyry system. Plus, the joint venture partner is currently performing a lot of exploration work to better define what may well be the feeder system for the mineralization at Madison.”
Eric Saderholm, President and Director of APM