Under the terms of the deal, AusAmerican will invest $5.5m on mine development and/or regional exploration and provides option payments totalling $3.5m on a number of key milestones.
AusAmerican is planning to rehabilitate the mine and begin production by mid-2014.
AusAmerican managing director Richard Holmes said that the company is seeking to acquire the project due to its relatively low entry cost, near term production potential and excellent exploration upside opportunities.
"This project adds significantly to our copper portfolio in the USA, a jurisdiction in which we feel very comfortable given its size, security, infrastructure, cost advantages and importantly, demand for copper," Holmes added.
"This acquisition will enable AusAmerican to self-fund exploration and the further development of the Victoria Mine, Blue Bell and De Soto copper projects."
AusAmerican has also appointed Ben Mead as a director, and effective immediately.
With considerable experience in the mineral, energy and aluminium sectors, Mead will continue to help with the due diligence, development, financing and on-going management of the project.
