American Eagle Announces Exercise of Participation Rights by South32 and Teck, Updates Details of Recently Announced Financing

Core Viewpoint - American Eagle Gold Corp. has successfully secured participation from existing shareholders, South32 Ltd and Teck Resources Limited, in its non-brokered private placement, indicating strong confidence in the company's future and its NAK project [2][5][6]. Financing Details - The company announced a financing plan for gross proceeds of up to C$34,540,000, which includes two offerings: the Sprott Offering of up to 19,200,000 common shares at C$1.20 per share, and a Concurrent Offering of up to 14,935,065 common shares at C$0.77 per share [3]. - The terms of the Concurrent Offering have been updated to 9,650,550 FT Shares at a price of C$1.1319 per share, resulting in gross proceeds of C$10,923,458, bringing the total expected proceeds to C$33,963,458 [4]. Shareholder Participation - Teck will maintain its 12.9% interest by acquiring 3,797,058 common shares at C$0.77 per share, while South32 will maintain its 19.9% interest by acquiring 5,853,492 common shares at the same price [5]. Use of Proceeds - The proceeds from the Offering will be utilized to further test the company's thesis at the NAK project and build on the successes of previous drill programs, which have expanded the project's scale and identified additional high-grade zones [8]. - Upon closing the Offering, the company will have over C$55 million in cash, fully funding substantial drill program expansions for 2026 and 2027 [10]. Project Overview - The NAK Project is located in the Babine copper-gold porphyry district of British Columbia, featuring excellent infrastructure and a significant near-surface copper-gold system measuring over 1.5 km x 1.5 km [13]. - Historical drilling and recent efforts have revealed substantial high-grade copper-gold mineralization, indicating the potential for further discoveries within the broader mineralizing system [13]. Future Plans - The company plans to execute the largest drill program in the region, with continuous operations expected into spring 2027, aiming to demonstrate the viability of the NAK project as a mine in the current metals cycle [6].