American Eagle Gold Corp (TSX-V:AE) said it has closed its previously announced non-brokered private placement of an aggregate 10 million units of the company at a price of C$0.20 each for aggregate gross proceeds of approximately C$2 million.
The company said it intends to use the net proceeds from the offering to continue advancing the exploration of the NAK Project and for general corporate purposes.
Each unit comprises one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share of the company at an exercise price of C$0.30 at any time on or before January 23, 2025.
READ: American Eagle Gold intends to complete a non-brokered private placement of 10M units for gross proceeds of C$2M
Of the 10,000,000 units issued under the offering, 50,000 units were issued directly or indirectly to Anthony Moreau, a director of American Eagle.
The offering is subject to final acceptance of the TSX Venture Exchange. Accordingly, the warrants will not be listed on any exchange.
In connection with the offering, the company incurred cash finder's fees to several finders in the total amount of $42,900. The company also issued to the finders a total of 402,450 common share purchase warrants. Each finder warrant entitles the holder to purchase one common share of the company at an exercise price of $0.20 at any time on or before January 23, 2025.
In lieu of a cash finder's fee and finder warrants, the company said it has issued a total of 187,950 units to Research Capital Corp as satisfaction of the finder's fees owed under the offering. Each unit has the same terms and rights as those issued in the offering.
The securities have not been, and will not be, registered under the United States Securities Act of 1933, as amended or any US state securities laws, and may not be offered or sold in the US or to, or for the account or benefit of, US persons absent registration or an applicable exemption from the registration requirements of the US Securities Act and applicable US state securities laws.
American Eagle Gold is focused on exploring its NAK project in the Babine copper-gold porphyry district of west-central British Columbia, 85 kilometres (km) from Smithers. NAK lies close to nearby Babine district past-producing mines (Bell, Granisle), in proximity to excellent infrastructure.
NAK is a classic porphyry copper-gold mineralized target that exhibits many signs of a robust and large-scale system. The 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.
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. Historical shallow drilling programs defined a near-surface copper-gold system with a footprint greater than 1.5 km times 1.5 km. It remains open and largely untested at depth.
Contact the author at jon.hopkins@proactiveinvestors.com