- The NAK property, located in the Stikine Island Arc Terrane, contains numerous copper/gold porphyry deposits.
After receiving the final approval from the TSX Venture Exchange, American Eagle Gold has completed the acquisition of a 100 percent stake in the NAK property in the Babine Copper-Gold Porphyry district in central British Columbia (BC), Canada.
The agreement is expected to provide American Eagle Gold with a “valuable risk-reward proposition” for testing a new geophysical feature via drilling work within a well-understood geologic environment.
American Eagle Gold will pay $450,000 over three years and a further $1,000,000 in work obligations over three years to earn a 100 percent stake in the project.
The Vendor will be charged a 2% net smelter royalty (NSR). By paying $1,500,000, this can be reduced to 1%.
The firms’ agreement was signed earlier this month.
“The Owner has the right to receive shares of the Company instead of the tranches totaling $450,000 in cash payments, provided that the value of such shares, at the respective time of issue of the tranche, cannot exceed an aggregate of $375,000 for the initial $300,000 in tranches, based on a ten-day volume-weighted price calculation before the issue of the tranche,” American Eagle Gold said at the time.
The NAK property is a copper/gold porphyry exploration target in the Stikine Island Arc Terrane, and it is home to numerous copper/gold porphyry deposits.
According to American Eagle Gold, the property’s copper-gold porphyry mineralization is open at depth. It is distinguished by a compelling geophysical signature similar to Newcrest’s Red Chris Mine and Newmont’s Tatogga project, located in Northwest British Columbia.
Furthermore, American Eagle Gold completed a private placement of 10,791,244 flow-through units for $0.14 per unit, for a total gross profit of $1,510,774.
The funds will be habituated to further the project’s exploration and development.
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