Find out more about this capital raise
Be the first with the news that moves the market- Teck Resources (TSX:TECK.A) will invest C$2.67 million in American Eagle Gold (TSXV:AE), a Canadian gold stock active in British Columbia
- The proceeds fully fund 2023 and 2024 exploration on American Eagle’s NAK copper-gold porphyry project
- Teck’s investment raises its stake in American Eagle to 19.99 per cent
- American Eagle is exploring for world-class gold and copper deposits in Canada
- American Eagle Gold (TSXV:AE) last traded at $0.235 per share. The stock is up by 370 per cent over the past year
Teck Resources (TSX:TECK.A) will invest C$2.67 million in American Eagle Gold (TSXV:AE), a Canadian gold stock active in British Columbia.
The proceeds fully fund an extended 2023 drill program and a 2024 drill program on American Eagle’s NAK copper-gold porphyry project near Smithers, B.C. The project features significant copper-gold mineralization, which is most recently highlighted by 776 metres of 0.50 per cent copper equivalent from surface in drill hole NAK23-08.
The news follows Teck’s $2.96 million investment in American Eagle Gold announced in May.
Upon closing of the present financing, Teck will own approximately 19.9 per cent of American Eagle’s issued and outstanding common shares on a non-diluted basis.
Closing is expected on or before Sept. 7.
All shares issued are subject to a hold period of four months plus one day after the closing date.
Financing terms
The structured flow-through financing, conducted on a private placement basis, will involve the issuance of 5,940,000 flow-through common shares priced at $0.45.
The financing structure provides for Teck to acquire the shares for a price of $1.66 million, or $0.28 per share.
The company will allocate an amount equal to the transaction’s gross proceeds to incur “Canadian exploration expenses” and “flow-through critical mineral mining expenditures” as defined in the Income Tax Act, as well as “B.C. flow-through mining expenditures” for purchasers in B.C.
The company will incur the Canadian exploration and flow-through expenditures on or before Dec. 31, 2024 and will renounce them to initial purchasers no later than Dec. 31, 2023.
American Eagle is exploring for world-class gold and copper deposits in Canada.
American Eagle Gold (TSXV:AE) last traded at $0.235 per share. The stock is up by 370 per cent over the past year.
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