American Pacific Mining Announces Non-Brokered Private Placement of up to CAD $5 Million

Rhea-AI Summary

American Pacific Mining Corp (CSE: USGD / OTCQB: USGDF) announced a private placement of up to 5,000,000 units at CAD $1.00 per unit, aiming for gross proceeds of up to CAD $5,000,000. Each unit comprises one common share and one-half warrant, allowing purchase of additional shares at $1.40 for 24 months. If shares exceed $2.00 for 10 consecutive days, warrants may expire early. The proceeds are earmarked for exploration at the Gooseberry and Tuscarora projects, potential acquisitions, and working capital.

Positive

• Private placement aimed at raising CAD $5,000,000 to fund exploration and acquisitions.
• Institutional investor interest of up to CAD $5,000,000 identified.
• Potential for early warrant expiration if share price exceeds $2.00.

Negative

• None.

VANCOUVER, British Columbia, Nov. 30, 2021 (GLOBE NEWSWIRE) -- American Pacific Mining Corp (CSE: USGD / OTCQB: USGDF / FWB: 1QC) (“American Pacific” or “the Company”) is pleased to announce a private placement (the “Private Placement”) of up to 5,000,000 units (the “Units”) at a price of CAD $1.00 per Unit for gross proceeds of up to CAD $5,000,000. Each Unit will be comprised of one common share (the “Shares”) and one half of one common share purchase warrant (each whole warrant a “Warrant”) with each Warrant entitling the holder to purchase one Share of the Company at a price of $1.40 per Share for a period of 24 months from the date of closing of the Private Placement.

In the event that the closing price of the Shares of the Company is at or above $2.00 per Share for a period of 10 consecutive trading days during the Warrant exercise period (with the 10th such trading day hereafter referred to as the "Eligible Acceleration Date"), the Warrant expiry date shall accelerate to the date that is 60 days after the Eligible Acceleration Date.

Up to CAD $5,000,000 of institutional investor interest has already been identified by the Company.

All securities issued will be subject to a four month hold period pursuant to securities laws in Canada. Finders’ fees of 7% cash and 7% finder’s warrants may be payable to qualified parties.

The Company intends to use the proceeds from the Private Placement for exploration drill programs at the Company’s Gooseberry Silver-Gold Project and Tuscarora Gold-Silver Project, both in Nevada, potential strategic acquisitions and general working capital.

About American Pacific Mining Corp.

American Pacific Mining Corp. is a precious metals explorer focused on opportunities in the Western United States. The Company's flagship asset is the high-grade, past-producing Madison Copper-Gold project in Montana, under option to joint venture with Kennecott Exploration Company, a division of the Rio Tinto Group, which the Company acquired in 2020. For this transaction, American Pacific was selected as a finalist in the S&P Global Platts Global Metals Awards, an annual program that recognizes exemplary accomplishments in 16 performance categories, including 'Deal of the Year,' the category in which American Pacific Mining competed.  The awards program is hosted by S&P Global Platts, the leading independent provider of information and benchmark prices for the commodities and energy markets. Also in the American Pacific's asset portfolio are the Gooseberry Silver-Gold project and the Tuscarora Gold-Silver project: two high-grade, precious metals projects located in key mining districts of Nevada, USA. The Company’s mission is to grow by the drill bit and by acquisition. 

On Behalf of the Board of American Pacific Mining Corp.

“Warwick Smith”

CEO & Director

Corporate Office: Suite 910 – 510 Burrard Street Vancouver, BC, V6C 3A8 Canada

Contact Kristina Pillon, President, High Tide Consulting Corp., 604.908.1695 / Kristina@americanpacific.ca

The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

FAQ

What is the purpose of the private placement announced by American Pacific Mining Corp on November 30, 2021?

The private placement aims to raise CAD $5,000,000 for exploration at the Gooseberry and Tuscarora projects, potential strategic acquisitions, and general working capital.

What are the terms of the units offered in the private placement by American Pacific Mining Corp?

Each unit comprises one common share and one-half warrant, priced at CAD $1.00 per unit, with a warrant allowing purchase of one share at $1.40 for 24 months.

What happens to the warrants if American Pacific Mining Corp's share price exceeds $2.00?

If the share price exceeds $2.00 for 10 consecutive trading days, the warrant expiry date will accelerate to 60 days after the eligibility date.

How much institutional interest has been identified for the private placement by American Pacific Mining Corp?

The company has identified up to CAD $5,000,000 of institutional investor interest for the private placement.

What projects will benefit from the funds raised in the private placement by American Pacific Mining Corp?

The funds will be used for exploration at the Gooseberry Silver-Gold Project and Tuscarora Gold-Silver Project in Nevada.