American West Metals secures A$18.8 million royalty package for Storm Copper Project

American West Metals Limited (ASX: $AW1) has entered into a binding agreement with Taurus Mining Royalty Fund L.P. to secure funding of up to US$12.5 million (A$18.8 million) under a royalty package for the Storm Copper Project in Canada. The funding will support exploration and development at Storm, with Taurus providing US$5m (A$7.5m) upon signing of formal documentation and financial close, US$3.5m (A$5.25m) upon delivery of a PFS for Storm, and US$4m (A$6m) upon announcement of an increase in the JORC compliant resource for Storm to at least 400,000 tonnes of contained copper at a resource grade of at least 1.00% Cu.

Executive Commentary on Royalty Funding

Dave O'Neill, Managing Director of American West Metals, expressed his satisfaction with the secured royalty funding, highlighting its non-dilutive nature and the substantial quantum of funds it provides. He emphasized the funding's terms as considerably more attractive and less dilutionary than alternative equity funding. O'Neill also noted the strong endorsement of the potential at Storm and the Company's well-positioned acceleration of work programs, reflecting positively on the shareholder wealth growth prospects amidst the high demand outlook for copper. Michael Davies, Taurus Chief Investment Officer, echoed the sentiment, expressing delight in furthering their involvement with the rapidly emerging high-grade, district-scale copper project at Storm.

Summary of Royalty Package and Project Outlook

American West Metals' securing of the A$18.8 million royalty package from Taurus Mining Royalty Fund L.P. marks a significant milestone in advancing the Storm Copper Project. The non-dilutive financing provides the Company with a robust balance sheet and accelerates the 2024 resource expansion and exploration programs at Storm. With the 2024 summer drilling program already underway and logistics for the 2025 field activities brought forward, the Company is well-positioned to capitalize on the increasing demand for copper. The announcement also outlines the key royalty terms, including the funding stages and the granting of a new 0.95% gross override royalty from all production at Storm. Furthermore, the Company's growth and exploration strategy, immediate resource upside potential, and potential for Direct Shipping Ore (DSO) highlight a promising outlook for the Storm Copper Project's development and production in the coming years.