- American Eagle Gold (TSXV:AE), one of 2023’s best gold stocks, has exercised its option to repurchase 20 per cent of the NAK copper-gold porphyry project in British Columbia from Orecap Invest (TSXV:OCI)
- The top-performing Canadian gold stock now owns a 100 per cent option to purchase the NAK project, with $225,000 due to exercise it in full
- American Eagle Gold is actively exploring its NAK project in the Babine Copper-Gold Porphyry district of central British Columbia
- American Eagle Gold stock (TSXV:AE) is up by approximately 350 per cent since making its initial mineral discovery at the NAK project in November 2022
American Eagle Gold (TSXV:AE), one of 2023’s best gold stocks, has exercised its option to repurchase 20 per cent of the NAK copper-gold porphyry project in British Columbia from Orecap Invest (TSXV:OCI).
The top-performing Canadian gold stock now owns a 100 per cent option to purchase the NAK project.
In December 2022, American Eagle Gold sold the 20 per cent option to Orecap for $1 million in exploration obligations to finance its initial drill campaign at NAK, while retaining an option to repurchase the interest for $1.5 million.
Consideration for the $1.5 million repurchase is composed of 6,976,744 AE common shares priced at $0.215 per share.
The deal closed on Thursday with Orecap now holding 10.7 per cent of American Eagle’s issued and outstanding common shares on a non-diluted basis.
“This option stems from a financing American Eagle entered into with Orecap before we made our major discovery at NAK. At the time, our shares were priced at $0.025 and the option was a creative alternative to a highly dilutive financing. American Eagle is very pleased with how this arrangement has worked out now that we are exercising our right to repurchase 20 per cent of NAK with our volume-weighted average price now $0.215. This transaction facilitated the drilling that led to our discovery at NAK, and did so in a creative way that benefited shareholders. We appreciate the support from Orecap for facilitating this transaction,” Anthony Moreau, American Eagle’s CEO, said in a statement.
Near-term catalysts
The company intends to release the five remaining assay results from the 2023 drill program, an induced polarization study, as well as details of its 2024 drill plan over the coming months.
Ongoing studies at NAK are expected to “yield significant news between now and the commencement of the 2024 drill season,” according to Thursday’s announcement.
American Eagle Gold’s NAK project
The NAK copper-gold porphyry project features a large near-surface copper-gold system measuring over 1.5 km x 1.5 km. American Eagle’s 2022 drilling program subsequently discovered significant copper-gold mineralization along a northerly trend.
Drilling in 2023 seeks to expand the known mineralized footprint and to identify higher-grade zones of copper and gold. Standout results include 900 m of 0.5 per cent copper equivalent (CuEq) and 102 m of 1.04 per cent CuEq.
Outstanding payments to own 100 per cent of the NAK project are $75,000 due April 2024 and $150,000 due upon disclosure of a minimum of 1 million ounces.
American Eagle Gold is actively exploring its NAK project in the Babine Copper-Gold Porphyry district of central British Columbia.
American Eagle Gold stock (TSXV:AE) last traded at $0.18 per share. The stock is up by approximately 350 per cent since announcing its initial mineral discovery at the NAK project in November 2022. The iShares S&P/TSX Capped Materials Index ETF is down by 1.92 per cent over the same period.
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