Strategic Partnership secures long-term future for the Storm Copper Project, Canada

Major offtake and funding deal to advance development and exploration activities

American West Metals Limited (American West or the Company) (ASX: AW1) is pleased to announce that the Company has entered into a binding agreement with global metal trading and advisory group Ocean Partners Holding Ltd (OP or Ocean Partners) which will comprise an equity investment in American West as well as project development funding and copper-silver offtake to OP for the Storm Copper Project.

• Strategic Partnership. American West Metals Ltd (American West) and Ocean Partners Holdings Ltd (OP) – a global metal trading, technical advisory and financing company – have entered into a partnership and funding agreement for the development of the Storm Copper Project (Storm or the Project). The binding heads of agreement includes:
  • US$2m Private Placement – OP will subscribe to fully paid ordinary shares of American West to the value of US$2m, subject to shareholder approval at a General Meeting of American West (Private Placement)
  • Project Financing – OP will provide up to 80% of initial capital for the development of the Project via a senior secured loan facility, subject to a bankable feasibility study and formal documentation
  • Offtake – OP’s subscription under the Private Placement is subject to American West and OP entering into a binding offtake agreement (Offtake Agreement) which secures OP 100% of the offtake of copper and silver products from the Project forecast under the Preliminary Economic Analysis (PEA)
  • Technical and copper market advisory. The American West/OP strategic alliance will work together to optimise and advance the development activities to define the best outcomes for the Project
• US$3.5m Royalty funding brought forward. Taurus Mining Royalty has agreed to advance the US$3.5m second tranche of the Royalty payment based on the positive Storm PEA results, with payment of US$2.8m to be made to American West this month
• New funds to be used to progress the Storm Copper Project, including:
  • An expansion of exploration activities, including drilling at near-mine and regional exploration targets
  • Pre-Feasibility Study (PFS) and permitting activities to advance the development of the Storm Project
  • Securing of key, long-lead processing, and mining equipment

Dave O’Neill, American West’s Managing Director, said:

“We are very pleased to announce a strategic partnership and funding package for the Storm Copper Project which secures the long-term future of the Project. This is another significant milestone for Storm and continues to position Storm as the next potential copper mine in Canada, joining other very successful base metal mines in the region such as Polaris (22Mt @ 14.1% Zn, 4% Pb) and Nanisivik (18Mt @ 9% Zn, 0.7% Pb)

“American West’s ability to attract and partner with global companies like Ocean Partners speaks volumes to the high-quality of the Project and the management team, and emphasises the low-risk pathway to potential development.

“Ocean Partners’ existing partnerships and experience with ore-sorting and direct shipping ore (DSO) copper products are a natural fit with Storm and will help strengthen and streamline the technical aspects of the processing work flow for the PFS and beyond.

“On the back of the recently released Storm PEA, Taurus has agreed to advance the second tranche of the royalty payment. This tranche of funding will now be available immediately and demonstrates Taurus’ strong belief in the development and growth potential of Storm.

“The funding package and strategic partnership will allow American West to execute the dual strategy of aggressive exploration and streamlined development during 2025. We look forward to updating investors as the work programs are finalised and get underway.”

Brent Omland, Ocean Partners CEO, also commented:

“We are delighted to be partnering with American West on the Storm Copper Project which is rapidly emerging as a long-life, district-scale copper opportunity. Our shared goal is the timely success of the Project and we look forward to working closely with the American West team as they continue to make significant advances through process innovation and resource growth. Ocean Partners has extensive experience in marketing and trading DSO into global markets and are confident in the marketability and attractiveness of the Storm copper-silver product.”

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