American Eagle Gold Corp. entered into an agreement to acquire a 100% interest in the Nakinilerak property (NAK) in the Babine Copper District of British Columbia. NAK is a copper-gold porphyry exploration target in the Stikine Island Arc Terrane, which hosts many copper-gold porphyry deposits. NAK’s known copper-gold porphyry mineralization is open at depth and is defined by a compelling geophysical signature analogous to Newcrest’s Red Chris mine and Tatogga project located in northwest British Columbia.
NAK has had more than $9 million of exploration work, including 18,000 meters (m) of drilling. Most of the historical drill holes have been shallow, averaging less than 169 m, which defined an extensive zone of near-surface, low-grade copper/gold mineralization, with the possibility of higher grades occurring at depth.
“The acquisition of NAK was data-driven and supported by the risk-reward proposition to drill test a new geophysical feature within a well understood geologic environment,” CEO Anthony Moreau said. “Our plan with Golden Gate has not changed, and its drill program is under way, however, with the addition of NAK, American Eagle adds exposure to a copper and gold property in Canada.”
The total purchase price payable by the American Eagle Gold to the vendor for the property shall be the assumption of all of the obligations of the vendor; issuance to the vendor of 2 million common shares of American Eagle Gold; the transfer of 2 million shares of Orefinders Resources Inc. as currently held by American Eagle Gold; and 1% net smelter royalty with an option by American Eagle Gold to buy back 0.5% for $1 million.