The 2024 drill programme revealed additional high-grade zones and increased the project’s scale. Credit: Nordroden/Shutterstock.

Australian mining company South32 has signed a subscription agreement to invest $29.16m (A$44.58m) in Canadian copper explorer American Eagle Gold, which is focused on the Nakinilerak (NAK) project in British Columbia.

The investment will see South32 acquiring a 19.9% stake in American Eagle Gold, with the funds earmarked for further drilling at the NAK project, building on the 2024 drill programme.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The 2024 drill programme revealed additional high-grade zones and increased the project’s scale.

The latest agreement will see American Eagle Gold issuing 33,321,577 common shares at C$0.875 each.

This price represents a premium over the five-day volume-weighted average trading price on the TSX Venture Exchange (TSX-V).

The completion of the offering is due around 26 November 2024.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

This is contingent upon the fulfilment of standard closing conditions including regulatory approvals and the acceptance of the TSX-V.

With this investment, American Eagle Gold is set to be well-funded for significant drill programme expansions planned for 2025 and 2026.

American Eagle Gold CEO Anthony Moreau said: “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. Upon closing of the offering, American Eagle will hold approximately $37m in cash, enabling us to thoroughly test our thesis for NAK through a comprehensive drill programme 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.”

In August this year, a subsidiary of South32 entered an earn-in agreement to acquire up to an 80% stake in Ridgeline Minerals’ Selena project in Nevada, US.