American West Metals (ASX:AW1) signed a definitive agreement with TMRF Canada, a subsidiary of Taurus Mining Royalty Fund (Taurus), for US$12.5 million ($18.8 million) in royalty funding for the Storm Copper Project in Canada.
The funds will be provided in tranches, starting with an initial US$1 million ($1.5 million) to be advanced this week.
The remaining balance will follow the completion of royalty registration expected in two to three weeks.
Dave O'Neill, Managing Director of American West Metals, commented, "We are very pleased to have finalised formal documentation of the royalty funding which allows us to commence accessing substantial non-dilutive funding for the Storm Copper Project."
O'Neill added that the funds would enable considerable advancements for what is shaping up to be a potentially globally significant mining operation.
According to the announcement, subsequent payments of US$3.5 million ($5.1 million) and US$4 million ($5.9 million) will be released upon achieving milestone developments, including the delivery of a pre-feasibility study and an increase in JORC compliant resource.
Michael Davies, Taurus Chief Investment Officer, stated, "We continue to be impressed with achievements at the Storm Copper Project and its potential to be a significant mining operation."
American West Metals is a mineral exploration company. The principal activities of the company include the development of the zinc-copper-indium deposit at West Desert Utah, as well as exploration across the broader project area, expanding the high-grade discoveries at the Storm Copper and Seal Zinc projects, Nunavut, and establishing a resource at the expansive Copper Warrior Project, Utah.
At the time of reporting, American West Metals’ share price was $0.099.