Precious and base metals explorer American Pacific Mining will sell its Palmer volcanogenic massive sulphide project in Alaska to Vizsla Copper, the companies announced on Thursday, in a deal valued at $15-million and structured through the issuance of Vizsla common shares.

Vizsla will acquire all outstanding shares of Constantine Metal Resources, a wholly owned American Pacific subsidiary that holds the Palmer project. The transaction includes additional milestone payments of up to $15-million, contingent on the delivery of a resource estimate of at least 22-million tonnes and the start of commercial production.

Milestone payments may be made in cash, Vizsla shares, or a combination of both.

“Palmer has long stood out to us as one of Alaska’s top critical metals opportunities," said American Pacific CEO Warwick Smith. "Our strategy has always centered around executing transactions that deliver value and upside for our shareholders, and we see the best path forward for Palmer as one that’s led by a dedicated group with the resources to unlock the exploration upside."

Smith pointed out that Vizsla’s leadership team had been behind multiple billion-dollar valuations, including Vizsla Silver and Skeena Resources and had "the proven technical abilities and commitment necessary to move Palmer forward expeditiously during what we believe will be the most exciting critical metals market in generations. We are excited to participate as significant shareholders of Vizsla as they endeavour to realise the full potential of Palmer.”

Vizsla Copper chairperson and CEO Craig Parry said Palmer was "the right asset at the right time".

"I’ve spent the past 25 years searching for high-grade copper deposits and understand how rare it is to find a project like Palmer, and even rarer to find one in such a strategic location. High-grade projects like Palmer allow for tremendous flexibility when it comes to delivering environmentally sustainable small footprint operations. Importantly, we pride ourselves on working constructively in collaboration and consultation with traditional landowners and communities and look forward to engaging positively with people and groups in the region.

“The world and the United States are desperate for critical mineral projects, further emphasising the importance of Palmer."

Parry said Vizsla would deploy a two-pronged approach in 2026, advancing the Palmer project while simultaneously advancing the Thira discovery in British Columbia, resulting in year-round exploration and news flow.

"The team and I look forward to building Vizsla Copper into the pre-eminent North American critical minerals explorer.”

The deal is subject to regulatory approvals, third-party consents, and the completion of a concurrent Vizsla financing for up to $25-million to advance Palmer. American Pacific will become a cornerstone shareholder in Vizsla and has agreed to a 36-month standstill, among other protective covenants.