American Copper Corporation
TSX VENTURE : AJ

American Copper Corporation

February 27, 2008 10:00 ET

American Copper Closes Land Package Transaction

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 27, 2008) - American Copper Corporation (TSX VENTURE:AJ) (the "Company") is pleased to announce that it has closed the transaction announced on January 14, 2008, whereby the Company optioned a land package comprised of five separate copper properties located in Arizona, New Mexico and Nevada (collectively, the "Properties"). The Properties are comprised of 630 claims covering a total of 19.6 square miles in Santa Cruz, Gila and Yavapai Counties (Arizona), Grant County, New Mexico, and Humboldt County, Nevada.

Under its Option Agreement with MinQuest Inc. of Reno, Nevada, the Company is reimbursing MinQuest its acquisition costs which include filing fees, holding fees and staking fees made by MinQuest in relation to the Properties. MinQuest will retain a 3% net smelter royalty. The Company can earn a 100% interest in the Properties or any portion thereof (subject to the 3% NSR) by expending an aggregate amount of US$25,000,000 on one or any combination of claims forming the Properties, and issuing 3,650,000 shares, over a period of ten years. The Company has the right to purchase up to one half of the royalty in each of the five properties on the basis of $2 million per each 1% of the royalty.

Pursuant to the terms of the Option Agreement, the Company has issued an aggregate of 275,000 shares to Minquest with a deemed value of $0.16 per share. The shares are subject to a hold period expiring June 26, 2008.

Richard Kern and Herb Duerr, both directors of the Company, each hold a 50% interest in MinQuest, and accordingly the transaction is deemed to be a related party transaction under TSX Venture Exchange policies. Mr. Kern's and Mr. Duerr's shareholdings in the Company will change over ten years as a result of this transaction. The option agreement was reviewed and approved by the board of directors, with both Mr. Kern and Mr. Duerr abstaining from voting on the resolution. The Company did not obtain a formal valuation of the Properties, as the same are of indeterminate value, and will be assessed over the life of the option to determine if in fact the option price is warranted. The Company is relying on available exemptions under Exchange policies from the requirements to obtain a formal valuation and to obtain minority shareholder approval to the option.

The Company sought and received approval for the transaction from a majority of its disinterested shareholders. The option agreement also received the approval of the TSX Venture Exchange on January 25, 2008. The board of directors is of the view that the terms of the option agreement are favorable to the Company, present limited risk to the Company, and it is reasonable to proceed with the option agreement, after having received TSX Venture Exchange and minority shareholder approval.


American Copper is dedicated to the principles of environmentally sound mining practices and believes that environmental stewardship and mining can co-exist. For details on the Company and its properties, visit the Company's website at www.americancoppercorp.com.

ON BEHALF OF THE BOARD

Robert Eadie, President & Chief Executive Officer

The TSX Venture Exchange has not reviewed nor does it accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • American Copper Corporation
    Robert Eadie
    President & Chief Executive Officer
    (604) 602-4935 or Toll Free: 1-866-602-4935
    (604) 602-4936 (FAX)
    Website: www.americancoppercorp.com