South32 Invests $29 Million in American Eagle Gold
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American Eagle Gold has entered into a subscription agreement with a wholly owned subsidiary of South32 Ltd., where South32 has agreed to invest approximately $29.16 million in the company on a non-brokered private placement basis.
“We are very pleased to welcome South32 as a strategic investor in American Eagle. This investment marks our second major mining enterprise that has endorsed our project and our work at the NAK copper-gold porphyry project. This investment underscores NAK’s potential, significantly strengthens our balance sheet, and enhances NAK’s profile,” said Anthony Moreau, CEO of American Eagle Gold.
“Upon closing of the offering, American Eagle will hold approximately $37 million in cash, enabling us to thoroughly test our thesis for NAK through a comprehensive drill program to explore the full extent of the system, including the perimeter of the porphyry stock. We believe NAK has the potential for a large-scale resource with near-surface potential, favorable topography, and excellent infrastructure access,” added Moreau.
Under the terms of the agreement, American Eagle will use the proceeds from the offering to build on the successes of its 2024 drill program, which expanded NAK’s scale and identified additional high-grade zones.
Upon closing, the company will be funded for substantial drill program expansions in 2025 and 2026.
At closing, the company and South32 will enter into an investor rights agreement (IRA). Under the terms of the IRA, South32 has been granted participation and top-up rights to allow South32 to maintain its pro-rata ownership in the company as well as information rights relating to the NAK project so long as South32’s ownership in American Eagle remains greater than 5 percent of the common shares on a non-diluted basis.
The NAK Project is located within the traditional territory of the Lake Babine Nation and 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.
American Eagle Gold is focused on exploring its NAK copper-gold porphyry project in west-central British Columbia, Canada.
South32 operates as a diversified metals and mining company in Australia, India, China, Japan, the Middle East, Mozambique, the Netherlands, Brazil, Russia, South Africa, South Korea, the United States, and internationally. Located in a historic mining district in the Patagonia Mountains of Southern Arizona, South32’s Hermosa project is currently the only advanced mine development project in the United States that could produce two federally designated critical minerals — manganese and zinc — both of which are essential minerals for powering the nation’s clean energy future. It has a portfolio of assets producing bauxite, alumina, aluminum, copper, silver, lead, zinc, nickel, metallurgical coal, manganese, ferronickel, and other base metals.
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