American Copper Corporation
TSX VENTURE : AJ

American Copper Corporation

March 12, 2008 09:00 ET

American Copper Corporation: Drilling Initiated at Squaw Creek

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 12, 2008) - American Copper Corporation (the "Company") (TSX VENTURE:AJ) is pleased to announce that it has initiated drilling at its Squaw Creek Project located 70 miles (113 km) north of Phoenix, Arizona. The initial core drilling program is targeting high grade copper/molybdenum veins and stockworks last mined in the 1940's. The company plans to drill approximately 5,000 feet (1,524 m) in 10 to 15 holes.

Mining records from World War II era mining at Squaw Peak (which are not NI 43-101 compliant and should not be relied upon) indicate average grades of the veins mined were 1.2% copper, 0.45% molybdenum, 0.50 oz/ton (17 g/t) silver and 0.002 oz/ton (.07 g/t) gold. All of the workings are caved-in and, therefore, no underground sampling has been done by American Copper. Previous surface drilling of the property, the most recent being in 1974, was all vertical and failed to test the near vertical veins. The current drilling program will test the grades and extent of the veins and stockwork zones. Phase 1 drilling is expected to last until May, 2008. The first drilling results are expected within six weeks.

After testing the high-grade shallow targets, deeper drilling of a large magnetic low, located north of the current drilling is planned. This drilling will test for a large buried porphyry copper/molybdenum system similar to the recently discovered Resolution deposit near Superior.

Richard Kern (P.Geo), a director of American Copper, is the Company's qualified person on the project as required under NI 43-101 and has prepared or reviewed the technical information contained in this press release.

In addition, the Company is pleased to announce that it will be proceeding with a non-brokered private placement of up to 2,000,000 units ("Units") at a price of $0.20 per Unit for gross proceeds of $400,000.

Each Unit will consist of one common share and one-half of a share purchase warrant (the "Warrant"). Each full Warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.40 for a period of one year from the closing of the private placement. The Warrants will include an early expiry feature which the Company may trigger should the common shares of the Company close above $0.40 for a minimum period of ten (10) trading days on the TSX Venture Exchange (the "Exchange").

The private placement is subject to Exchange acceptance and required regulatory approvals. All of the securities issued pursuant to this offering will have a hold period expiring four months after the closing date.

The net proceeds of the private placement will be added to working capital.

A finder's fee will apply in this transaction in accordance with the policies of the Exchange.

In addition, an aggregate of 540,000 incentive stock options have been granted to directors, officers and consultants of the Company at an exercise price of $0.25 per share. The options are exercisable for a period of five years, ending on March 11, 2012, and are subject to the requirements of the Exchange.

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
    (604) 602-4935 or Toll Free: 1-866-602-4935
    (604) 602-4936 (FAX)
    Website: www.americancoppercorp.com