American Eagle Gold has concluded the acquisition of a 100% stake in the NAK property in the Babine Copper-Gold Porphyry district in central British Columbia (BC), Canada after securing the TSX Venture Exchange’s final nod.

The deal is expected to offer “valuable risk-reward proposition” for American Eagle Gold to test a new geophysical feature, via drilling work, within a well-understood geologic environment.

In order to earn the 100% stake in the project, American Eagle Gold will make payment of $450,000 over a three-year period and a further $1,000,000 in work obligations over three years.

This is subject to a 2% net smelter royalty (NSR) to the Vendor. This can be reduced to 1% by paying $1,500,000.

The deal between the firms was signed earlier this month.

At that time, American Eagle Gold said in a statement: “The Owner has the right to receive shares of the Company in lieu of the tranches totalling $450,000 in cash payments, provided that the value of such shares, at the respective time of issue of the tranche, cannot exceed an aggregate of $375,000 for the initial $300,000 in tranches, based on a ten-day volume weighted price calculation prior to issue of the tranche.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Said to be a copper/gold porphyry exploration target in the Stikine Island Arc Terrane, the NAK property hosts many copper/gold porphyry deposits.

American Eagle Gold said that the property’s copper-gold porphyry mineralisation is open at depth. It is defined by a compelling geophysical signature which is analogous to Newcrest’s Red Chris Mine and Newmont’s Tatogga project located in Northwest BC.

Furthermore, American Eagle Gold has completed private placement of 10,791,244 flow-through units, each at a price of $0.14, for gross proceeds of $1,510,774.

The firm plans to use the capital for the project’s exploration and advancement.