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Gold mining

American Eagle to Sell NSR Royalty in Kuta Ridge Gold Project

Strategic Insights

— 1 min read

American Eagle Gold Corp. has entered into a definitive agreement to sell a portion of its net smelter return (NSR) royalty in the Kuta Ridge Gold Project in Papua New Guinea to Precious Earth Resources Inc. in exchange for 500,000 common shares of American Eagle. Under the terms of the agreement, American Eagle will retain a 1% NSR in the project. The sale allows American Eagle to streamline its royalty profile while preserving a meaningful interest in a prospective project. The transaction is expected to be completed in five business days.

Key Takeaways:

  • American Eagle will sell two-thirds of its 3% NSR royalty in the Kuta Ridge Gold Project to Precious Earth Resources Inc.
  • The sale will result in American Eagle retaining a 1% NSR in the project, eliminating any buyback rights held by Precious Earth.
  • The transaction will facilitate the repurchase of 500,000 shares of American Eagle, reducing its share count.
  • American Eagle will retire and cancel the consideration shares upon completion of the transaction.
  • The company will retain a 1.0% NSR on a promising project within a highly gold-rich belt, positioning it to benefit from future development success.
  • The agreement will be governed by and interpreted in accordance with the laws of Ontario and the federal laws of Canada.
  • American Eagle has obtained exemptive relief from the Ontario Securities Commission to repurchase the consideration shares.
  • The NAK Project, a copper-gold porphyry project in central British Columbia, has a large near-surface copper-gold system measuring over 1.5 km x 1.5 km.
  • Drilling at the NAK Project in 2022, 2023, and 2024 returned significant intervals of high-grade copper-gold mineralization.

Statistics:

  • American Eagle will forfeit 500,000 shares upon completion of the transaction.
  • Two-thirds of the 3% NSR royalty will be sold to Precious Earth Resources Inc.
  • The remaining 1% NSR royalty will be retained by American Eagle.
  • American Eagle retains a 1.0% NSR on a prospective project within a highly gold-rich belt in Papua New Guinea.
  • The NAK Project is a copper-gold porphyry project with a large near-surface copper-gold system measuring over 1.5 km x 1.5 km.
  • Drilling at the NAK Project in 2022, 2023, and 2024 resulted in 95% of assays above 0.25% CuEq.

Sources:

  • Newsfile Corp.
  • Precious Earth Resources Inc.
  • American Eagle Gold Corp.
  • TSX Venture Exchange
  • Regulation Services Provider
  • SEDAR Plus

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