THE BOURSE WHISPERER: Australian-American Mining Corporation (ASX: AIW) has extended the due diligence period for the Blue Bell and De Soto projects, from 12 months to 18 months.
AusAmerican has paid the project vendor a fee of US$25,000 to extend the due diligence period by six months.
The company now has until March 2014 to exercise the option and purchase the project, consideration being a total of US$2m payable in four US$500,000 instalments over a three year period.
AusAmerican explained the he extension of the due diligence period effectively allows the company an additional six month period to pay the first US$500,000 option fee to purchase 100 per cent of the Blue Bell and De Soto copper-gold-silver projects located in Arizona, USA.
“This is a great result for the company as it significantly reduces the company’s upfront commitments during these very difficult market conditions,” AusAmerican managing director Richard Holmes said in the company’s announcement to the Australian Securities Exchange.
“I would like to thank the property owner for his pragmatic approach during negotiations and we look forward to continuing to develop what is shaping up to be a very prospective property.”
Quarter 1 2013 Blue Bell drill hole plan. Source: Company announcement
AusAmerican recently completed an initial 5,000 metre, 26 hole RC drilling program at Blue Bell.
To date results from 17 of the holes drilled have been received with mineralisation occurring in 15 of these holes.
The company said it has been highly encouraged by the results it has achieved so far and expects results from the remaining holes in the next few weeks.