Storm Copper Project De-Risked but Feasibility Study Remains Critical Milestone

Strategic Partnership Advances Storm Project

American West Metals Limited (ASX, AW1) has reached a significant milestone in the development of its Storm Copper Project, located on Somerset Island in Nunavut, Canada. The company announced the completion of a US$2 million private placement with Ocean Partners Holdings Ltd, a global metal trading and advisory firm, which now holds a 9.4% stake in American West. Alongside this equity investment, the two parties have executed a binding offtake agreement securing Ocean Partners’ rights to 100% of the base production of copper, silver, and gold from the project for at least eight years or the life of the resource.

This strategic alliance not only strengthens the project's financial foundation but also brings Ocean Partners’ technical expertise to bear on processing development and optimisation efforts already underway. The partnership is expected to streamline the project’s path to production, leveraging Ocean Partners’ experience with ore-sorting and direct shipping ore copper products.

Robust Economics and Financing Structure

The Storm Copper Project’s Preliminary Economic Assessment (PEA), released earlier in 2025, highlights a technically sound and economically attractive mining opportunity. With an estimated initial capital cost of US$47.4 million, the project is forecast to deliver a net present value (NPV) of approximately US$149 million and a post-tax internal rate of return (IRR) of around 46%. Notably, the use of 100% debt financing could elevate the pre-tax IRR to an impressive 135%, underscoring the project's strong financial leverage potential.

Ocean Partners has committed to providing debt financing for up to 80% of the initial capital expenditure through a senior secured loan facility, contingent on the completion of a bankable feasibility study and formal documentation. This financing arrangement significantly de-risks the capital requirements and supports American West’s dual strategy of advancing exploration while progressing development activities throughout 2025.

Exploration Upside and Regional Context

The Storm Project covers over 2,200 square kilometres within the prolific Polaris mineral district, with American West holding an 80% interest alongside Aston Bay Holdings. The current mineral resource estimate stands at 20.6 million tonnes grading 1.1% copper and 3.8 grams per tonne silver, containing 229,000 tonnes of copper and 2.2 million ounces of silver. Importantly, less than 5% of the 110-kilometre prospective copper horizon has been systematically explored, leaving substantial scope for resource expansion.

American West plans a major exploration campaign in 2025 targeting high-quality copper prospects along the belt, which could materially enhance the project’s resource base and long-term production profile. The project benefits from existing infrastructure, including a 50-person camp and proximity to deep-water shipping routes via the Northwest Passage, facilitating logistics in this remote Arctic region.

Looking Ahead

Managing Director Dave O’Neill emphasised the significance of the partnership with Ocean Partners, noting that the completed milestones markedly reduce funding risks and validate the project’s quality. The collaboration is already influencing technical workflows and is expected to accelerate the progression towards a definitive feasibility study and eventual mine development.

As American West Metals advances its exploration and development programs, investors will be watching closely for updates on feasibility outcomes, financing finalisation, and exploration results that could further underpin the Storm Project’s potential as a low-cost, long-life copper-silver-gold mine in a Tier 1 jurisdiction.