American Eagle Gold Corp (TSX-V:AE) has said that it intends to complete a non-brokered private placement of 10 million units at a price of C$0.20 per unit for gross proceeds of C$2 million.
The company said that proceeds from the offering will be used for general working capital purposes and exploration work at its NAK project located in the Babine Copper-Gold Porphyry district in central British Columbia.
Each unit in the offering will consist of one common share of the company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at a price of C$0.30 at any time two years from the closing of the offering.
READ: American Eagle Gold says Orefinders acquires 20% interest in NAK copper-gold porphyry project under exploration option transaction
Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 - Prospectus Exemptions, the units will be offered for sale to purchasers resident in Canada and/or other qualifying jurisdictions pursuant to the Listed Issuer Financing Exemption.
The offering is anticipated to close on or about January 31, 2023, or such later date as the company may determine and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
The company said it may pay a finder's fee or commission of up to 6% in cash and convertible securities equal to 6% of the securities sold under the offering.
NAK is a classic porphyry copper-gold mineralized target that exhibits many signs of a robust and large-scale system. Historical shallow drilling programs defined a near-surface copper-gold system with a footprint greater than 1.5 kilometres (km) times 1.5 km. It remains open and largely untested at depth.
The NAK property is road accessible, and many target areas coincide with forest industry clear cuts. Drilling can be completed year-round, and no helicopter support is required.
The NAK property is 85 km from Smithers in the Babine copper-gold porphyry district of west-central British Columbia. It lies close to nearby Babine district past-producing mines (Bell, Granisle), in proximity to excellent infrastructure. NAK's highly encouraging initial results make it a prime candidate for further exploration. The company's main objective is to advance this newly revitalized mineralizing system into a major discovery.
Contact the author at jon.hopkins@proactiveinvestors.com