The well-established Vancouver miner Teck Resources Limited (TSX: TECK.A and TECK.B) (NYSE: TECK) has chosen to increase its ownership in Toronto’s American Eagle Gold Corp. (TSX-V: AE) (OTCQB: AMEGF) by 5 per cent through a flow-through private placement valued at $1.66 million.
American Eagle announced the investment on Thursday, which will help fund the company’s drill programs at its NAK copper-gold project in northwestern British Columbia this year and in 2024. The deal is expected to close on September 7, giving Teck a 20 per cent stake in the company.
American Eagle says Teck may choose to increase or decrease its investment in the company going forward depending on market conditions and other factors.
The company’s objective at NAK this year is to expand the known mineralized footprint and find additional sources of high-grade copper and gold. American Eagle says previous drilling at the project revealed a near-surface copper-gold system spanning 1.5 square kilometres.
“We have one of the best locations in the world in terms of building a mine, in terms of infrastructure,” said Anthony Moreau, CEO of American Eagle.
Why the Teck deal is great for American Eagle Shareholders, Teck Resources, and the NAK property.$AE #Copper pic.twitter.com/wSO5UAJuTp
— American Eagle Gold (@AmEagleGold) August 17, 2023
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Earlier this month, American Eagle reported its best intercept to date at the project: 776 metres at 0.50 per cent copper equivalent from the surface, a result that significantly expanded the site’s mineralized footprint to the west.
Exploration at NAK has been ongoing since the 1960s and over $9 million has been invested in the project since that time. It is currently American Eagle’s flagship assset and primary focus.
“NAK continues to separate itself from its peers by demonstrating size, an impressive grade profile, consistency of mineralization, and bulk tonnage potential that begins near surface,” said Moreau.
Teck announced on Tuesday that it had entered a freight contract with Denmark’s shipping company Dampskibsselskabet NORDEN A/S (CPH: DNORD) aimed at reducing CO² emissions in Teck’s steelmaking coal supply chain. It is expected to reduce yearly emissions from Teck shipments handled by NORDEN by 25 per cent.
Copper is currently worth $5.05 per pound and gold is valued at $2,557.87 an ounce.
American Eagle shares dropped by 7.7 per cent Friday to $0.24 on the TSX Venture Exchange but have risen by over 70 per cent in the past six months.
Teck stock rose by 1.4 per cent to $53.04 on the Toronto Stock Exchange.
rowan@mugglehead.com
