American Eagle Closes Previously Announced Upsized Private Placement for $8.2 Million
American Eagle Closes Previously Announced
Upsized Private Placement for $8.2 Million
Toronto, Ontario--(Newsfile Corp. - May 17, 2024) - American Eagle Gold Corp. (TSXV: AE) ("American
Eagle" or the "Company") is pleased to announce that it has closed its previously announced upsized
private placement of 7,866,715 charity flow-through common shares of the Company (the "Charity FT
Shares") at a price of C$1.04 per Charity FT Share (the "Offering Price") for aggregate gross proceeds
of up to C$8,181,234 (the "Offering").
Proceeds from the Offering will be used for exploration work at the Company's NAK project located in
the Babine Copper-Gold Porphyry district in central British Columbia. The final drill hole of the 2023
exploration season yielded 302 metres of 1.09% within 606 m of 0.74% Copper Equivalent starting from
98 metres downhole. The Company plans to step out from this drill hole to begin the 2024 drill season,
set to begin this month.
The Charity FT Shares qualify as "flow-through shares" (within the meaning of subsection 66(15) of the
Income Tax Act (Canada) (the "Tax Act"). An amount equal to the gross proceeds from the issuance of
the Charity FT Shares will be used to incur eligible resource exploration expenses which will qualify as (i)
"Canadian exploration expenses" (as defined in the Tax Act), and (ii) as "flow-through critical mineral
mining expenditures" (as defined in subsection 127(9) of the Tax Act) (collectively, the "Qualifying
Expenditures"). Qualifying Expenditures in an aggregate amount not less than the gross proceeds raised
from the issue of the Charity FT Shares will be incurred (or deemed to be incurred) by the Company on
or before December 31, 2025 and will be renounced by the Company to the initial purchasers of the
Charity FT Shares with an effective date no later than December 31, 2024.
Final acceptance by the TSX Venture Exchange of the Offering is subject to the completion of customary
post-closing filings.
The Charity FT Shares were offered for sale to purchasers resident in Canada pursuant to the listed
issuer financing exemption under Part 5A of NI 45-106 (the "Listed Issuer Financing Exemption"). The
common shares of the Company issued in the Offering are immediately freely tradeable under
applicable Canadian securities legislation.
In connection with the Offering, the Company paid finder's fees to certain parties ("Finders") for
purchasers introduced to the Company by such Finder. In total, the Company paid a total of $295,466
finders' fees to Finders in connection with the Offering. Additionally, the Company issued finder's
warrants ("Finders' Warrants") to Finders for purchasers introduced to the Company by such Finder. The
Finders' Warrants entitled the holder to purchase one common share in the capital of the Company
("Common Shares") at a price of $1.04 per Common Share, for a period of 24 months following the date
hereof. In total, the Company issued 468,994 Finders' Warrants.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the
securities in the United States. The securities have not been and will not be registered under the United
States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and
may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as
defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act
and applicable state securities laws or an exemption from such registration is available.
It is not anticipated that any new insiders will be created, nor that any change of control will occur, as a
result of the Offering.
Details of NAK's 2024 Drill Program:
The 2024 drill program, scheduled to begin soon, will integrate the Company's growing understanding of
the relationship between the emplacement of multi-phase Eocene dikes and sills with reactive and
permeable host rocks to form the extensive Nak mineralized system. The company is developing models
for geology, mineralization, alteration, and structure for the system, which will form the basis for its
ongoing planning. The expanded 2024 drill program, currently planned for 15,000 metres, will aim to link,
better define, and expand upon the historical North and South zones, which the Company showed in its
2022 and 2023 drill programs to extend to considerable depths (close to 950 m below surface) along a
strike length of 750 m and across a width of 400 m. Intercepts from 2023 include 900 m of 0.50%
Copper Equivalent from surface in the North zone (
Link to NAK23-12 News Release
) and 302 metres of
1.09% within 606 m of 0.74% Copper Equivalent starting from 98 metres downhole in the South Zone
(
Link to NAK23-17 News Release
).
Click Here to View the 2024 Drill Plan at NAK
Click Here to View 2024 Drill Plan Webinar Hosted by Geologists Charlie Greig and Neil Prowse
About American Eagle's NAK Project
The NAK Project lies within the Babine copper-gold porphyry district of central British Columbia. It has
excellent infrastructure through all-season roads and is close to the towns of Smithers, Houston, and
Burns Lake, B.C., which lie along a major rail line and Provincial Highway 16. Historical drilling and
geophysical, geological, and geochemical work at NAK, which began in the 1960's, tested only to
shallow depths. Still, the work revealed a very large near-surface copper-gold system that measures over
1.5 km x 1.5 km. Drilling completed in 2022 and 2023 by American Eagle has returned significant
intervals of high-grade copper-gold mineralization that lie beyond the extent of historical drilling,
indicating that several zones of near-surface and deeper mineralization, locally with considerably higher
grades, exist within the broader NAK property mineralizing system.
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About American Eagle Gold Corp.
American Eagle is focused on exploring its NAK copper-gold porphyry project in west-central British
Columbia, Canada.
Anthony Moreau, Chief Executive Officer
416.644.1567
www.americaneaglegold.ca
Q.P. Statement
Mark Bradley, B.Sc., M.Sc., P.Geo., a Certified Professional Geologist and 'qualified person' for the
purposes of Canada's National Instrument 43-101 Standards of Disclosure for Mineral Properties, has
verified and approved the information contained in this news release.
Forward-Looking Statements
Certain information in this press release may contain forward-looking statements. Forward-looking
statements in this press release include, but are not limited to, statements regarding the receipt of final
regulatory approval, including the approval of the TSX Venture Exchange, the intended use of proceeds
and intended drill program or its anticipated results at the Company's NAK project, the ability of the
Company to make the qualifying expenditures as anticipated by management, and other matters
ancillary or incidental to the foregoing. This information is based on current expectations that are subject
to significant risks and uncertainties that are difficult to predict. Therefore, actual results might differ
materially from those suggested in forward-looking statements. American Eagle Gold Corp. assumes no
obligation to update the forward-looking statements or to update the reasons why actual results could
differ from those reflected in the forward looking-statements unless and until required by securities laws
applicable to American Eagle Gold Corp. Additional information identifying risks and uncertainties is
contained in filings by American Eagle Gold Corp. with Canadian securities regulators, which filings are
available under American Eagle Gold Corp. profile at
www.sedarplus.ca
.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the TSX Venture Exchange policies) accept responsibility for the adequacy or accuracy of this
release.
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES
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