View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
December 27, 2021updated 07 Jan 2022 7:13am

American Eagle finalises purchase of Canada’s NAK copper-gold project

The NAK property in the Stikine Island Arc Terrane comprises many copper/gold porphyry deposits.

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.”

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.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The mining industry's most comprehensive news and information delivered every month. The mining industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy


Thank you for subscribing to Mining Technology