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Copper|Exploration|generation|Gold|Infrastructure|Mining|PROJECT|Surface|System|Drilling|Infrastructure
Copper|Exploration|generation|Gold|Infrastructure|Mining|PROJECT|Surface|System|Drilling|Infrastructure
copper|exploration|generation|gold|infrastructure|mining|project|surface|system|drilling|infrastructure

South32 makes investment in Canadian copper explorer

11th November 2024

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Diversified mining and metals company South32 on Monday announced an agreement to invest in Canadian copper explorer American Eagle Gold (AEG), which holds an option over the Nakinilerak (NAK) project in British Columbia.

South32 will acquire a 19.9% interest in AEG at $22-million, which will be used to support further drilling at NAK and build on the success of the 2024 drill programme.

The investment aligned with South32’s strategy to transform its portfolio by discovering a next generation of base metals mines, said chief development officer Simon Collins.

“The investment provides us with exposure to an emerging copper exploration project with significant potential in a premier mining district,” he stated.

AEG’s share price rose sharply on Monday to C$0.82 a share following the announcement of the investment. AEG will issue 33 321 577 shares in the capital of the company at C$0.875 a share, representing a premium to a five-day volume-weighted average trading price of common shares on the TSX-V for gross proceeds of C$29.16-million.

"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,” CEO Anthony Moreau.

Upon closing of the offering, AEG will hold about C$37-million in cash, enabling it to thoroughly test its 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, favourable topography, and excellent infrastructure access.”

Edited by Creamer Media Reporter

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