TORONTO, Dec. 15, 2021 /CNW/ - American Eagle Gold Corp.
(TSXV: AE) ("American Eagle" or the "Company") would
like to announce that it intends to complete a non-brokered private
placement (the "Offering") of up to 7,142,857 flow-through units of
the Company (the "FT Units") at a price of C$0.14 per FT Unit for gross proceeds to the
Company of C$1,000,000. Each FT Unit
will consist of one common share of the Company to be issued as a
"flow-through share" within the meaning of the Income Tax Act
(Canada) (each, a "FT Share") and
one half of one common share purchase warrant (each whole warrant,
a "Warrant"). Each Warrant will entitle the holder thereof to
purchase one common share at a price of C$0.25 at any time two years from the closing of
the Offering.
Proceeds from the Offering will be used for expanded exploration
work at the Company's recently purchased NAK project located in the
Babine Copper-Gold Porphyry district in central British
Columbia.
The gross proceeds from the issuance of the FT Shares will be
used for "Canadian Exploration Expenses" (within the meaning of the
Income Tax Act (Canada)) (the
"Qualifying Expenditures"), which will be renounced with an
effective date no later than December 31,
2021 to the purchasers of the FT Shares in an aggregate
amount not less than the gross proceeds raised from the issue of
the FT Shares. If the Qualifying Expenditures are reduced by
the Canada Revenue Agency, the Company will indemnify each
subscriber of FT Shares for any additional taxes payable by such
subscriber as a result of the Company's failure to renounce the
Qualifying Expenditures.
About American Eagle Gold Corp.
American Eagle Gold is traded on the TSX Venture Exchange under
the symbol 'AE' and is focused on exploring its flagship property,
Golden Gate. The Property is situated on the Cortez Trend,
which hosts three large Carlin-type gold deposits operated by
Barrick and Newmont's Joint Venture, Nevada
Gold Mines (Pipeline, Cortez
Hills and Goldrush). The Property is located 10 km
south of Cortez Hills and 5 km south of Goldrush and shows many of
the same geological characteristics as at the two deposit
areas.
Forward-Looking Statements
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the TSX Venture Exchange
policies) accepts responsibility for the adequacy or accuracy of
this release. Completion of the Offering and the purchase of the
NAK project both remain subject to approval of the TSX Venture
Exchange. Certain information in this press release may
contain forward-looking statements. Forward-looking statements in
this press release include, but are not limited to, statements
regarding completing of the Offering. This information is based on
current expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. American Eagle Gold Corp. assumes no obligation to
update the forward-looking statements, or to update the reasons why
actual results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to American Eagle Gold Corp. Additional
information identifying risks and uncertainties is contained in
filings by American Eagle Gold Corp. with Canadian securities
regulators, which filings are available under American Eagle Gold
Corp. profile at www.sedar.com.
SOURCE American Eagle Gold Corporation