South32 ups investment in American Eagle Gold

Australia’s South32 (ASX: S32) has exercised its top-up right to maintain a 19.9% interest in American Eagle Gold (TSXV: AE) (OTCQB: AMEGF) with the purchase of an additional 1.16 million shares.The exercise follows American Eagle’s recent issuance of 1 million shares to complete its option to acquire 100% of the NAK copper-gold project in central British Columbia.The stocks purchased by South32 were initially issued as charity flow-through shares priced at C$0.71 each, which the Australian miner will then buy off the subscriber at a discount, as per an investor rights agreement when it first invested in American Eagle last November.American Eagle’s stock was trading at C$0.48 as of 11:25 a.m. ET, at the lower end of its 52-week range of C$0.38-C$1.07. The Toronto-based junior has a market capitalization of C$82.7 million.“South32’s continued support speaks to the quality of the NAK project and the work our team has done,” commented Anthony Moreau, CEO of American Eagle, in a press release Thursday.The now fully-owned project, situated within the Babine copper-gold porphyry district, has been explored by the American Eagle team for over three years, during which its drilling campaigns have resulted in significant high-grade mineralization.Before that, the property has only been explored to shallow depths during the 1960s. The historic work revealed a large near-surface copper-gold system that measured 1.5 km x 1.5 km, serving as the foundation for American Eagle’s subsequent exploration.Drilling is expected to continue this year to grow the size and grade of the NAK deposit, the company said.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com