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Aguila American GOLD Receives Approval to Complete Acquisition of Wusa GOLD Project and Financing

Financings Mergers & Acquisitions Property Options & Staking

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NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION

OR DISSEMINATION DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES.

AGUILA AMERICAN GOLD RECEIVES APPROVAL TO COMPLETE ACQUISITION OF

WUSA GOLD PROJECT AND FINANCING

Vancouver, British Columbia – September 28, 2020: Aguila American Gold Limited (“Aguila” or

the “Company”) (TSX-V: AGL ) is pleased to report that regulatory acceptance was received by the

Company to complete its option to acquire up to an 80% interest in the WUSA epithermal gold project located

within the Western Cascades, Oregon, USA, as announced in the Company’s news release of August 5th 2020.

The Company is also pleased to announce the cl osing of its non -brokered private placement financing (the

“Private Placement”) announced on August 5th, 2020, as updated on August 21st and September 16th. Aguila

raised gross proceeds of CDN$2,679, 200 by issuing 11,907,556 units (each, a “ Unit”) of the Company, at a

price of CDN$0.225 per Unit, with each Unit comprising one common share (a “ Share”) and one -half of a

share purchase warrant. Each whole warrant entitles the holder to purchase an additional common share at a

price of CDN$0.45 for a p eriod of two years from the closing of the Private Placement. Finders’ fees totalling

CDN$14,850 were paid on a portion of the Private Placement. The proceeds , net of costs related to the

acquisition of the WUSA interests and Private Placement above, will be used for exploration and development

activities and general working capital. All securities issued will be subject to a four month hold period from the

date of closing.

Related Party Transaction

Officers and/or directors of the Company participated in the Private Placement and purchased an aggregate

of 234,000 Units for aggregate gross proceeds of CDN$52,650. The participation in the Private Placement by

the officers and/or directors of the Compan y constitutes related party transactions pursuant to Multilateral

Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The

Company is exempt from the requirements to obtain a formal valuation or minority share holder approval in

connection with the participation in the Private Placement in reliance on the exemptions contained in sections

5.5(a) and 5.7(1)(a) of MI 61 -101, respectively, as the fair market value of the transaction does not exceed

25% of the Company’s market capitalization.

The securities offered 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 U.S. state securities laws, and may not be offered or

sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable

exemption from the registration requirements of the U.S. Securities Act and a pplicable U.S. state securities

laws. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in

the United States, nor in any other jurisdiction.

About Aguila American Gold Ltd (TSX.v: AGL)

Aguila American Gold is an emerging gold company enhancing shareholder value through exploration and

discovery.

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ON BEHALF OF THE BOARD,

“Mark Saxon”

Mark Saxon

President & CEO

For further information, please contact:

www.aguila.gold

1305 – 1090 West Georgia St., Vancouver, BC, V6E

3V7

[email protected]

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is def ined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Statements

Certain information set out in this news release constitutes forward-looking information. Forward looking statements are

often, but not always, identified by the use of words such as "seek", "anticipate”, "plan", "continue”, "estimate”, "expect",

"may”, "will", "intend", "could", "might", "should", "believe" and similar expressions. Forward -looking statements are

based upon the opinions and expectations of management of the Company as at the effective date of such statements and,

in certain cases, infor mation provided or disseminated by third parties. Although the Company believes that the

expectations reflected in such forward-looking statements are based upon reasonable assumptions, and that information

obtained from third party sources is reliable, th ey can give no assurance that those expectations will prove to have been

correct. Readers are cautioned not to place undue reliance on forward-looking statements.

These forward-looking statements are subject to a number of risks and uncertainties. Actual results may differ materially

from results contemplated by the forward -looking statements. Accordingly, the actual events may differ materially from

those projected in the forward -looking statements. When relying on forward -looking statements to make deci sions,

investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue

reliance on such forward-looking statements. The Company does not undertake to update any forward-looking statements,

except as may be required by applicable securities laws.