American Eagle Gold (TSX-V:AE) has approximately C$50 million ($50.3 million) in cash to support exploration as it expands its Nak Copper-Gold Porphyry Project land package by about 470% in British Columbia, Canada.
The company has increased its footprint from 1,632 hectares to around 9,283 hectares through an option agreement with Eagle Plains Resources (TSX-V:EPL) and independent staking in the Morrison area.
The agreement allows American Eagle to earn up to an 80% interest in three claim groups adjoining Nak. The company says exploration across the additional ground will run alongside its ongoing 55,000m Nak drilling program without diverting resources from it.
American Eagle has paid C$20,000 and issued 50,000 shares on closing. It may earn an initial 60% interest by spending C$4.85 million on exploration, paying a further C$400,000, and issuing 1.2 million shares over six years to 31 December 2031.
A further C$1 million payment, up to half of which may be made in shares, would increase its interest to 80%.
Eagle Plains will retain a 2% net smelter return royalty once the initial option is exercised. American Eagle may repurchase half of the royalty for C$2.5 million.
The transaction has conditional approval from the TSX Venture Exchange but remains subject to final approval.
American Eagle CEO Anthony Moreau says more than 90,000m of drilling at Nak informed the company’s selection of the new ground.
“With approximately C$50 million in cash, we can advance this ground without slowing the Nak program,” Moreau says.
Previous exploration across the optioned claims includes a 286 line-kilometre airborne magnetic survey, more than 32 line kilometres of soil sampling, and prospecting that returned copper-mineralised rock samples.
American Eagle says geophysical and geochemical anomalies coincide with Babine igneous suite intrusive rocks in areas that have received little modern drilling.
Its 2026–27 exploration program will include data compilation, 3D magnetic inversion, soil sampling, mapping, prospecting, and ground geophysics to generate drill targets. The work will run alongside a 55,000m drilling program at Nak, where three rigs are scheduled to operate through April 2027.
Write to France Pinzon at Mining.com.au
Images: American Eagle Gold
