- American Eagle Gold (TSXV:AE) intends to undertake an up to C$34,540,000 capital raise
- Eric Sprott, one of Canada’s top mining investors, will invest C$23,040,000 for a 9.9 per cent interest in the junior mining company
- American Eagle Gold stock last traded at C$0.94 and has added 108.89 per cent year-over-year
American Eagle Gold (TSXV:AE) intends to undertake an up to C$34,540,000 capital raise, including C$23,040,000 from distinguished Canadian mining investor, Eric Sprott.
Sprott will be issued 19.2 million flow-through shares priced at C$1.20, representing a 9.9. per cent stake in the junior mining company.
American Eagle Gold will allocate the proceeds to advance its flagship NAK copper-gold project in British Columbia, which the company believes to be the most attractive undeveloped porphyry project in the province.
NAK’s South Zone features high grades measuring 700 m long x 500 m wide x 800 m deep with clear potential for expansion, representing the majority of the project’s massive 1.7 km x 1.5 km mineralized footprint.
“NAK has truly caught my attention,” Sprott noted in Friday’s news release. “I believe the grade and length of the intervals are exceptional, and the gold grade is the icing on the cake. I believe this is one of the best undeveloped porphyrys in Canada.”
The company plans on conducting a more than 25,000 metre drilling program at NAK in 2026, complemented by metallurgical test work, followed by a maiden resource estimate by Q2 2027.
Existing investors South32 (19.9 per cent) and Teck Resources (12.9 per cent) have the right to maintain their pro-rata ownership in the company, which would entail the issuance of up to 14,935,065 shares priced at C$0.77 for proceeds of up to C$11.5 million.
“We’re very pleased to welcome Eric Sprott as another strategic, long-term investor on the register,” added Anthony Moreau, chief executive officer of American Eagle Gold. “What makes his participation particularly notable is that it’s rare for him to back copper stories. We’re proud to have him alongside Teck, South32 and Orecap as foundational, long-term shareholders.”
The transactions, expected to close on March 20, would increase American Eagle Gold’s cash position to more than C$50 million, fully funding its exploration initiatives through 2027.
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