American Eagle Gold Corp (TSX-V:AE) said it has received final approval from the TSX Venture Exchange and has closed its acquisition transaction to acquire a 100% interest in the NAK property in the Babine Copper-Gold Porphyry district in central British Columbia (BC).
The NAK acquisition offers American Eagle Gold a valuable risk-reward proposition to drill test a new geophysical feature within a well-understood geologic environment, the company said.
NAK's known copper-gold porphyry mineralization is open at depth and is defined by a compelling geophysical signature analogous to Newcrest's Red Chris Mine and Newmont's Tatogga project located in Northwest BC.
The Toronto-based company noted that the acquisition of NAK was supported by the analysis and reinterpretation of geochemical, geophysics, and drilling data, all of which demonstrated coincidental anomalies.
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American Eagle Gold also said it has closed its previously announced private placement of 10,791,244 flow-through units at a price of $0.14 per FT unit, for gross proceeds of $1,510,774.
The company noted that the funds will go towards the advancement and exploration of the project. The gross proceeds from the issue and sale of the flow-through shares will be used for Canadian exploration expenses and will qualify as "flow-through mining expenditures”, the company said.
Each FT unit consists of one common share of the company to be issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) 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$0.25 at any time for a period of 24 months from the closing of the offering, the company said.
As consideration for services provided by certain finders in connection with the offering, the company paid finder's fees consisting of cash consideration of $98,754.19, and 705,387 finder's warrants. Each finder's warrant entitles the holder to obtain one common share of the company at a price of $0.14 per finder's share for a period of 24 months from the closing of the offering.
American Eagle Gold is focused on exploring its flagship property, Golden Gate. The property is on the Cortez Trend, which hosts three large Carlin-type gold deposits operated by Barrick and Newmont's Joint Venture, Nevada Gold Mines (Pipeline, Cortez Hills, and Goldrush).
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