American Pacific raises $9.75 million for Montana drilling
American Pacific Mining Corp. [USGD-CSE, USGDF-OTCQX, 1QC] said it has upsized a previously announced non-brokered private placement financing to $9.75 million, up from an earlier $7.5 million target. Under the upsized placement, the company will issue 44.3 million units priced at 22 cents per unit.
The private placement is now fully subscribed, and the order book is now closed.
The company intends to use the net proceeds from the offering for exploration and development of the company’s Madison Copper-Gold Project [in Montana], other mineral exploration and development projects, and for general corporate purposes. Closing of the offering is expected to occur as soon as practicable and may occur in one or more tranches.
Under the terms of the financing, each unit consist of one common share and one half of one share purchase warrant. Each whole warrant will entitle the holder to acquire one additional share at a price of 32 cents per warrant share for three years after closing.
On Wednesday, American Pacific shares eased 15.2% or $0.043 to 23.7 cents. The shares trade in a 52-week range of 31 cents and 14 cents.
Madison is 100%-owned past-producing high-grade copper-gold skarn and porphyry system. It was host to small-scale production that concluded in 2012, with 2.7 million pounds of copper produced at grades ranging from 20-35% copper.
In a press release on October 1, 2025, American Pacific said it had received a drill permit for the Madison project, a move that enables the company to commence drilling on multiple high-priority district targets, including porphyry targets identified through extensive geologic mapping, geophysical surveys and 3D modeling. At the time, the company said seven drill pads have been fully permitted with an additional 12 pads pending approval. The company said the program envisioned up to 30 holes from multiple pads, including two deep 900-metres tests of porphyry targets. These sites span the property, targeting previously untested ground, distal porphyry anomalies, and high-grade skarn and quartz vein mineralization identified in surface sampling.
“We appreciate the strong investor participation in this financing, which underscores the market’s confidence in our strategy of advancing our highly prospective Madison Copper-Gold Project in Montana, while also providing exposure to a significant equity portfolio of exceptional western US copper, gold and silver company,’’ said American Pacific CEO Warwick Smith.
“Following the closing of this financing, we intend to undertake a robust drill program aimed at delineating a first mineral resource estimate at Madison, while also testing the full scope of the project by drilling both skarn and porphyry targets.’’
Through a 2025 transaction with Vizsla Silver Corp. [VZLA-TSXV, NYSE, 0G3 Frankfurt], American Pacific has established a major equity position and secured $15 million in aggregate milestone upside exposure to the advanced exploration stage Palmer Copper-Zinc VMS Project in Alaska. Also, in American Pacific’s portfolio are several high-grade precious metals projects located in key mining districts in Nevada, on which the company intends to transact.