Oceana will make an initial $50,000 cash payment to American Pacific and, upon earning a 51% interest in the property, a second payment of $200,000 in cash or shares at Oceana’s option. Oceana will be the operator. Upon Oceana completing its earn-in obligations, a joint-venture management committee will be formed.

American Pacific CEO Warwick Smith commented, “We are very pleased to partner with OceanaGold at Tuscarora. The company’s management and board of directors extend a warm welcome to the OceanaGold team as both sides work to add value to the project and define further drill targets across the large and historic land package.

“This announcement adds excitement to the project and the company as we enter a new exploration season. OceanaGold is the perfect partner in our eyes, especially with the success they have had at Waihi in New Zealand, a similar high-grade epithermal system. For a company of our size, this transaction is a big milestone.”