American Pacific closes $9.75-million private placement

Executive Summary

• American Pacific Mining Corp. has closed a non-brokered private placement financing, raising approximately $9.75 million in aggregate proceeds.
• The company issued 44,318,182 units at a price of $0.22 per unit, with each unit comprising one common share and one-half of one share purchase warrant.
• Net proceeds will be used for exploration and development at the Madison copper-gold project in Montana, as well as other mineral exploration projects and general corporate purposes.

Key Details

• Transaction Structure: Non-brokered private placement offering.
• Units Issued: 44,318,182 units.
• Price Per Unit: $0.22 CAD.
• Gross Proceeds: $9,750,000.04.
• Warrant Terms: Each unit includes one-half of one warrant. Each warrant entitles the holder to acquire one additional share at an exercise price of $0.32 per share.
• Warrant Expiry: February 5, 2029.
• Finders' Fees: Aggregate cash fees of $623,431.60 paid to six financial institutions (Clarus Securities Inc., Eventus Capital Corp., Ventum Financial Corp., Research Capital Corp., Canaccord Genuity Corp., and Haywood Securities Inc.).
• Finders' Warrants: 2,747,780 non-transferable warrants issued to finders, exercisable at $0.22 and $0.32 per share until expiry, subject to a four-month hold period under Canadian securities laws.
• Use of Proceeds: Exploration and development of the Madison copper-gold project in Montana; other mineral exploration and development projects; and general corporate purposes.
• Regulatory Basis: Conducted under the listed issuer financing exemption (Part 5A of National Instrument 45-106) for qualified investors in Canada and applicable private placement exemptions in the United States.
• Hold Period: Securities issued are not subject to a hold period under prevailing Canadian securities laws; U.S. investors are subject to U.S. resale restrictions.
• Project Update: CEO Warwick Smith stated the company is "fully funded for a robust drill program at the Madison copper-gold project," planning to test both skarn and porphyry targets later in the quarter.

Notable Quotes

• "We are very pleased to close this $9.75-million financing and deeply appreciate the strong support from both new and existing investors who share our vision for American Pacific," commented chief executive officer Warwick Smith. "We are now fully funded for a robust drill program at the Madison copper-gold project in Montana, where we plan to test both skarn and porphyry targets."