News Releases

American Eagle Gold Closes C$2.96 Million Financing

May 25, 2023

Toronto, Ontario – May 25, 2023 – American Eagle Gold Corp. (AE: TSXV | AMEGF: OTCQB) ("American Eagle" or the "Company") is pleased to announce that it has closed the previously announced strategic investment in the Company by Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK) ("Teck") through a structured charity flow-through financing on a private placement basis.

The Company has issued 14,400,000 common shares on a flow-through basis (the “Charity FT Shares”) at a price of C$0.205 per Charity FT Share for issue proceeds of approximately $2.96 million (the “Offering”).  Through a structured flow-through transaction, Teck subsequently acquired 14,400,000 common shares of the Company for an aggregate purchase price of $1.87 million, or $0.13 per common share.


  • The Offering fully funds the American Eagle’s 2023 drill program on NAK and provides the capital to advance its ongoing exploration activities at the NAK copper-gold porphyry project located (the “Nak Project”), near Smithers, BC .
  • Drilling on American Eagle's NAK is expected to recommence in June.
  • No warrants or finders fees were issued in connection with the Offering.

"We are thrilled to announce that we have successfully secured Teck's investment and obtained all the necessary permits, paving the way for our upcoming drill program in 2023. The timing of these developments couldn't be more favorable, and we anticipate that the investment community will soon recognize the immense potential of our NAK property, just as Teck, a prominent industry leader and expert, has.  We are excited to have Teck’s backing to advance work on the project, given the company’s track record in exploration, and commitment to collaborative relationships to advance exploration projects." said Anthony Moreau, CEO of American Eagle Gold.

American Eagle announced on May 10th (see release here) it had received its 5-Year Drill Permit for the NAK Project.  The proceeds of the Offering fully funds American Eagle's 2023 drill program. The primary objectives for this year’s drill program will be to:

  • Follow up the 2022 drill program via east-west step-out drilling and begin to delineate the true size of this potential deposit;

  • Expand and better define the orientation and distribution of the higher-grade zones of dyke-hosted bornite mineralization;
  • Expand the known footprint of the high-grade at-surface south gold zone ; and
  • Step out and investigate the highly prospective southern margin of the main Babine stock porphyry.

View 2023 Drill Targets

View NAK Technical Webinar

About the Previous Drilling

Historical drilling defined a large surface copper and gold footprint measuring 1500 x 1500m open in all directions. However, historical drilling had been restricted to the upper parts of the mineralized alteration zone, testing to an average vertical depth of only 170m. American Eagle's 2022 drill program tested mineralization below the historical shallow drilling and discovered broad intercepts of bornite bearing copper-gold porphyry mineralization.

2023's objective is to continue advancing the NAK property by expanding its known mineralized footprint and identifying the high-grade source of copper and gold on NAK.

About American Eagle's NAK Project

NAK is a porphyry copper-gold target that exhibits many signs of a robust and large-scale system. Historical drilling, while shallow, defined a near-surface copper-gold system with a footprint greater than 1.5km x 1.5km. Drilling in 2022 showed that the property holds substantial deep potential but remains largely untested at depth, while near-surface mineralization potential was significantly larger than historically defined.

The NAK property is road accessible, and many target areas coincide with forest industry clear cuts. Drilling can be undertaken year-round, and no helicopter support is required. The NAK property is 85 kilometres from Smithers, BC, in the Babine copper-gold porphyry district of west-central British Columbia. It lies close to past-producing mines (Bell, Granisle) and excellent infrastructure. NAK's highly encouraging initial results make it a prime candidate for further exploration. The Company's main objective is to advance this newly revitalized prospect into a major discovery. Drilling is expected to commence in early June 2023. 

Closing Details

Pursuant to the Offering, a total of 14,400,000 Charity FT Shares were issued on a charity flow through basis. An amount equal to the gross proceeds from the issuance of the Offering will be used to incur, on the Company's Canadian mineral exploration properties, eligible resource exploration expenses that will qualify as (i) "Canadian exploration expenses" (as defined in the Income Tax Act (the “Tax Act”), (ii) "flow-through critical mineral mining expenditures" (as defined in subsection 127(9) of the Tax Act) (collectively, the "Qualifying Expenditures"); and (iii) as a “BC flow-through mining expenditure” for purchasers in British Columbia. The Qualifying Expenditures in an aggregate amount not less than the gross proceeds raised from the issue of the Offering will be incurred on or before December 31, 2024 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, 2023. In the event that the Company is unable to renounce the issue price for the Charity FT Shares on or prior to December 31, 2023 for each Charity FT Share purchased and/or if the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will as sole recourse for such failure to renounce, indemnify each initial purchaser for the additional taxes payable by such subscriber to the extent permitted by the Tax Act as a result of the Company's failure to renounce the Qualifying Expenditures as agreed.