Consideration of $0.43 Cdn per Common Share represents a premium of approximately 274%
Cardston, Alberta--(Newsfile Corp. - June 6, 2024) - American Creek Resources Ltd. (TSXV: AMK) ("American Creek" or the "Company"), announces that it has entered into a non-binding and arm's length letter of intent dated June 5, 2024 (the "LOI") with Cunningham Mining Ltd. ("Cunningham"), a private British Columbia corporation, to engage in due diligence and negotiations regarding the terms of a proposed transaction (the "Proposed Transaction") whereby Cunningham, or a subsidiary of Cunningham, would acquire all of the issued and outstanding securities of the Company. Through this proposed transaction, Cunningham would acquire control of the Company's 20% fully carried interest in the Treaty Creek Property which has an Indicated Mineral Resource of 27.87 million ounces (Moz) of AuEQ grading 1.19 g/t AuEQ and an Inferred Mineral Resource of 6.03 Moz of AuEQ grading 1.25 g/t AuEQ (see complete description below). If the parties agree to proceed with the Proposed Transaction, the Company expects the Proposed Transaction will be carried out by way of a court-approved plan of arrangement (the "Arrangement") under the Business Corporations Act (British Columbia) (the "BCBCA").
The Company's Board of Directors (the "Board"), after an extensive period of negotiation and consideration of various alternatives, has approved entry into the LOI, pursuant to which Cunningham proposes to acquire all the issued and outstanding securities of the Company, including all common shares of the Company (the "Common Shares"), at a price of $0.43 Cdn per Common Share, payable in cash (the "Consideration"). The Consideration represents a premium of approximately 274% to the $0.115 Cdn closing price of the Common Shares on the TSX Venture Exchange (the "TSXV") on June 5, 2024 (the last trading day prior to the execution of the LOI). The LOI is non-binding and there can be no assurance that the Proposed Transaction contemplated by the LOI, or any other transaction, will be completed. Closing is subject to a number of conditions and uncertainties described below.
Darren Blaney, CEO of American Creek, stated: "We are excited that Cunningham has recognized the value and the potential of the Treaty Creek Property despite the tough junior market conditions we are currently experiencing. We believe this proposed transaction may provide not only a liquidity event for our longstanding shareholders, but also represents an opportunity for shareholders to potentially realize a 250% plus premium to the present market valuation of their equity in the company. We look forward to working with Cunningham to finalize a definitive agreement in due course that protects and provides value for our shareholders."
Ryan Cunningham, CEO of Cunningham, stated: "With this pending future transaction Cunningham Mining is ushering in the next frontier in terms of tokenization and monetization of in ground mineral resources. We are confident in the prospects of the gold, silver, and copper resources of the Treaty Creek Property and feel it will be a transformational addition to our upcoming NGTGOLD Token. Our team looks forward to the role it will play in the Golden Triangle as well as in the future of mining."
Exclusivity