Business
American Eagle Gold Closes C$2.67 Million Financing
Toronto, Ontario--(Newsfile Corp. - September 7, 2023) - American Eagle Gold Corp. (TSXV: AE) (OT...
About this update from American Eagle Gold Corp
[{"type":"text","content":"American Eagle Gold Closes C$2.67 Million FinancingToronto, Ontario--(Newsfile Corp. - September 7, 2023) - American Eagle Gold Corp. (TSXV: AE) (OTCQB: AMEGF) (\"American Eagle\" or the \"Company\") is pleased to announce that it has closed the previously announced strategic investment in the Company by Teck Resources Limited (TSX: TECK.A) (TSX: TECK.B) (NYSE: TECK) (\"Teck\") through a structured charity flow-through financing on a private placement basis.The Company has issued 5,940,000 common shares on a flow-through basis (the \"Charity FT Shares\") at a price of C$0.4503 per Charity FT Share for issue proceeds of approximately $2.67 million (the \"Offering\"). Through a structured flow-through financing transaction, Teck subsequently acquired 5,940,000 Common Shares of the Company for an aggregate purchase price of $1.66 million, or $0.28 per Common Share.The Offering proceeds fully fund an extended 2023 Drill Program and its 2024 Drill Program at the Company's NAK copper-gold porphyry project (the \"Nak Project\") near Smithers, BC. No warrants or finder's fees were issued in connection with the Offering.About American Eagle's NAK ProjectThe NAK Project is in the Babine copper-gold porphyry district of British Columbia, near past-producing mines and with excellent infrastructure. Previous drilling at NAK revealed a large near-surface copper-gold system measuring over 1.5 km x 1.5 km. Historical exploration was limited to shallow depths, averaging 170 m. In 2022, American Eagle's 2022 drilling program explored deeper and discovered significant copper-gold mineralization. The objective for 2023 is to expand the known mineralized footprint at NAK and identify high-grade sources of copper and gold. The property is accessible by road, can be drilled year-round, and is largely without the need for helicopter support. The promising initial results make NAK an ideal candidate for further exploration. Drilling resumed in June 2023, and the Company released assays for its first hole (NAK23-08) of the 2023 program on August 9, 2023. Highlights of the hole were 776 metres of 0.50% Copper Equivalent from surface. Click here for the News Release.Closing DetailsPursuant to the Offering, a total of 5,940,000 Charity FT Shares were issued on a charity flow through basis. An amount equal to the gross proceeds from the issuance of the Offer...