South32 (ASX: S32), the Australian miner with a A$13.6-billion (US$8.7-billion) market cap, is buying more shares to maintain its stake in American Eagle Gold (TSXV: AE; US-OTC: AMEGF) that’s advancing the NAK copper-gold project in British Columbia.
The additional 1.16 million shares purchased by South32 keeps its holding at 19.9%, American Eagle said on Thursday. The stock was priced as charity flow-through shares at 71¢ each, which South32 will acquire at a discount, according to an agreement.
“South32’s continued support speaks to the quality of the NAK project and the work our team has done,” American Eagle CEO Anthony Moreau said in a news release.
American Eagle’s stock fell 1.1% to 46¢ on Thursday in Toronto, at the lower end of its 52-week range of 38¢ to $1.07. The Toronto-based junior has a market capitalization of $82.7 million.
Babine district
The now fully-owned NAK, situated within the Babine copper-gold porphyry district, has been explored by the American Eagle team for over three years. A 30,000-metre drill program ended last month.
Drill results include 50 metres grading 0.11 gram per tonne gold, 0.69% copper, 7.65 grams silver and 250 parts per million molybdenum from 302 metres depth, the company said Dec. 18.
Before American Eagle, the property has only been explored to shallow depths during the 1960s. The historic work revealed a large near-surface copper-gold system that measured 1.5 km by 1.5 km, serving as the foundation for the company’s subsequent exploration.
Drilling is expected to continue this year to grow the size and grade of the NAK deposit, the company said.
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