Aston Bay Receives C$1.38 Million Initial Royalty Payment for the Storm Copper Project, Canada First payment received from a total C$3.46 million allocated to Aston Bay with no use of proceeds restriction
Aston Bay Receives C$1.38 Million Initial Royalty Payment for the
Storm Copper Project, Canada
First payment received from a total C$3.46 million allocated to Aston Bay
with no use of proceeds restriction
TORONTO, Ontario, October 22, 2024 – Aston Bay Holdings Ltd. (TSXV: BAY) (OTCQB: ATBHF) ("Aston Bay"
or the "Company") is pleased to announce that it has received the initial US$1 million (C$1.38 million1) in
funding as part of an agreement with the Company's joint venture partner American West Metals Limited
("American West") and TMRF Canada Inc., a subsidiary of Taurus Mining Royalty Fund L.P. ( “Taurus”),
whereby Taurus will provide funding of up to US$12.5 million ( C$17.3 million1) under a royalty package
for the Storm Copper Project.
Aston Bay and American West have formed a 20/80 unincorporated joint venture in respect of the Storm
Project property , wi th Aston Bay maintaining a free carried interest until a decision to mine upon
completion of a bankable feasibility study. Aston Bay will be allocated 20% of the funding from the royalty
package (C$3.46 million1) with no use of proceeds restriction.
Highlights
• The first payment of US$5 m (C$6.9m1) under the royalty package has been advanced to American West and
Aston Bay
• Further payments to the royalty package are:
• US$3.5m (C$4.9m1) upon delivery of a Prefeasibility Study (PFS) for Storm and submission of permitting
documents for development at Storm
• US$4m (C$5.5m1) 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
• Funding under the royalty package will be allocated to American West and Aston Bay in accordance with their
respective interests under the unincorporated joint venture for Storm, being 80% for American West and 20%
for Aston Bay
• There is no use of funds restriction for Aston Bay, providing a non -dilutive source of funds to advance the
Company's other projects and contribute to Aston Bay's robust balance sheet
• The funding has enabled an expansion of the exploration and development activities conducted by American
West at Storm, including:
• Expansion of the 2024 drill program , which will underpin a maiden resource currently being
constructed to Canadian Institute of Mining standards , as well as a significant anticipated upgrade to
the American West's JORC-compliant estimate
• An investment in the 2025 field activities with bulk supplies being delivered to site by ship charter –
saving approximately C$4 million on the potential logistics costs for the 2025 program
• Completion of environmental, mining and development studies – including detailed testwork that
supports the potential for a direct shipping operation – which will support the delivery of a PFS
anticipated in early 2025
1 Based on USD:CAD exchange rate of 1:1.3838.
Thomas Ullrich, Chief Executive Officer of Aston Bay, commented:
"We are very pleased with the efforts of our partner American West and with this investment in Storm by
Taurus. The recognition of the value of the Storm Project by such a well -respected international mining
royalty company is a strong endorsement of the potential of the Project.
"The royalty financing provides significant funding and is structured to promote the rapid advancement of
the Storm Copper Project. American West continues to actively advance the Project, with goals set to
achieve the remaining two milestones in the royalty funding agreement within the next six to twelve
months.
"This could bring an additional C$2 million to Aston Bay for a potential total of C$3.46 million non-dilutive
funds to advance our other critical minerals and gold exploration projects."
For further details on the royalty package under the Taurus arrangement, see Aston Bay's June 24, 2024
news release.
About Aston Bay Holdings
Aston Bay is a publicly traded mineral exploration company exploring high -grade critical and precious
metal deposits in Nunavut, Canada and Virginia, USA.
The Company is currently exploring the Storm Copper Property and Cu -Ag-Zn-Co Epworth Property in
Nunavut. The Company is also in advanced stages of negotiation on other lands with high -grade critical
and precious metals potential in North America.
The Company and its joint venture partners, American West Metals Limited and its wholly -owned
subsidiary, Tornado Metals Ltd. (collectively, "American West"), have formed a 20/80 unincorporated
joint venture in respect of the Storm Project property, which hosts the Storm Copper Project and the Seal
Zinc Deposit. Under the unincorporated joint venture , Aston Bay shall have a free carried interest until
American West has made a decision to mine upon completion of a bankable feasibility study, meaning
American West will be solely responsible for funding the joint venture until such decision is made. Afte r
such decision is made, Aston Bay will be diluted in the event it does not elect to contribute its
proportionate share and its interest in the Storm Project property will be converted into a 2% net smelter
returns royalty if its interest is diluted to below 10%.
About American West Metals Limited
AMERICAN WEST METALS LIMITED (ASX: AW1) is an Australian clean energy mining company focused on growth
through the discovery and development of major base metal mineral deposits in Tier 1 jurisdictions of
North America. The company's strategy is focused on developing mines that have a low -footprint and
support the global energy transformation. AW1's portfolio of copper and zinc projects in Utah and Canada
include significant existing resource inventories and high -grade mineralization that can generate robus t
mining proposals. Core to AW1's approach is a commitment to the ethical extraction and processing of
minerals and making a meaningful contribution to the communities where its projects are located.
Led by a highly experienced leadership team, AW1's strategic initiatives lay the foundation for a
sustainable business which aims to deliver high -multiplier returns on shareholder investment and
economic benefits to all stakeholders.
For further information on American West, visit: www.americanwestmetals.com.
FORWARD-LOOKING STATEMENTS
Statements made in this news release, including those regarding entering into the joint venture and each
party's interest in the Project pursuant to the agreement in respect of the joint venture, management
objectives, forecasts, estimates, expectations, or predictions of the future may constitute "forward-
looking statement", which can be identified by the use of conditional or future tenses or by the use of
such verbs as "believe", "expect", "may", "will", "should", "estimate", "anticipate", "project", "plan", and
words of similar import, including variations thereof and negative forms. This press release contains
forward-looking statements that reflect, as of the date of this press release, Aston Bay 's expectations,
estimates and projections about its operations, the mining industry and the economic environment in
which it operates. Statements in this press release that are not supported by historical fact are forward -
looking statements, meaning they i nvolve risk, uncertainty and other factors that could cause actual
results to differ materially from those expressed or implied by such forward-looking statements. Although
Aston Bay believes that the assumptions inherent in the forward -looking statements are reasonable,
undue reliance should not be placed on these statements, which apply only at the time of writing of this
press release. Aston Bay disclaims any intention or obligation to update or revise any forward -looking
statement, whether as a result o f new information, future events or otherwise, except to the extent
required by securities legislation.
Neither TSX Venture Exchange nor its regulation services provider (as that term is defined in policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
For more information contact:
Thomas Ullrich, Chief Executive Officer
(416) 456-3516
Sofia Harquail, IR and Corporate Development
(647) 821-1337