American Eagle to Sell Non-Core Royalty in Connection with Share Repurchase and Retirement
American Eagle Gold (TSXV: AE) (OTCQB: AMEGF) has announced a strategic transaction involving its Kuta Ridge Gold Project in Papua New Guinea. The company will sell two-thirds of its 3% Net Smelter Return (NSR) royalty to Precious Earth Resources in exchange for 500,000 American Eagle shares, which will subsequently be retired and cancelled.
The company will retain a 1% NSR in the Kuta Ridge project, which is strategically located near Barrick's Porgera Mine and K92's Kainantu Mine. The remaining NSR will not be subject to any buyback rights by Precious Earth. The transaction, expected to close in five business days, has received exemptive relief from the Ontario Securities Commission regarding issuer bid requirements.
American Eagle Gold (TSXV: AE) (OTCQB: AMEGF) ha annunciato una transazione strategica riguardante il suo Progetto Aurifero Kuta Ridge in Papua Nuova Guinea. La società venderà due terzi della sua royalty del 3% sul Net Smelter Return (NSR) a Precious Earth Resources in cambio di 500.000 azioni di American Eagle, che saranno successivamente ritirate e cancellate.
La società manterrà una royalty dell'1% NSR sul progetto Kuta Ridge, situato in posizione strategica vicino alla miniera Porgera di Barrick e alla miniera Kainantu di K92. La restante parte della NSR non sarà soggetta a diritti di riacquisto da parte di Precious Earth. La transazione, che si prevede sarà conclusa entro cinque giorni lavorativi, ha ottenuto un'esenzione dalla Ontario Securities Commission riguardo ai requisiti per le offerte di riacquisto da parte dell'emittente.
American Eagle Gold (TSXV: AE) (OTCQB: AMEGF) ha anunciado una transacción estratégica relacionada con su Proyecto de Oro Kuta Ridge en Papúa Nueva Guinea. La compañía venderá dos tercios de su regalía del 3% sobre el Net Smelter Return (NSR) a Precious Earth Resources a cambio de 500,000 acciones de American Eagle, que serán posteriormente retiradas y canceladas.
La empresa conservará una regalía del 1% NSR en el proyecto Kuta Ridge, ubicado estratégicamente cerca de la mina Porgera de Barrick y la mina Kainantu de K92. La regalía restante no estará sujeta a derechos de recompra por parte de Precious Earth. Se espera que la transacción se cierre en cinco días hábiles y ha recibido una exención de la Comisión de Valores de Ontario respecto a los requisitos para ofertas de recompra por parte del emisor.
American Eagle Gold (TSXV: AE) (OTCQB: AMEGF)은 파푸아뉴기니에 위치한 Kuta Ridge 금 프로젝트와 관련된 전략적 거래를 발표했습니다. 회사는 3% 순제련수익률(NSR)의 3분의 2를 Precious Earth Resources에 판매하고, 그 대가로 500,000주의 American Eagle 주식을 받으며, 이 주식들은 이후 소각 및 취소될 예정입니다.
회사는 Barrick의 Porgera 광산과 K92의 Kainantu 광산 근처에 전략적으로 위치한 Kuta Ridge 프로젝트에 대해 1% NSR을 유지할 것입니다. 나머지 NSR은 Precious Earth의 재매입 권리에 포함되지 않습니다. 이 거래는 5영업일 내에 마무리될 예정이며, 온타리오 증권위원회로부터 발행사 매입 요건에 대한 면제가 승인되었습니다.
American Eagle Gold (TSXV : AE) (OTCQB : AMEGF) a annoncé une transaction stratégique concernant son projet aurifère Kuta Ridge en Papouasie-Nouvelle-Guinée. La société vendra les deux tiers de sa redevance de 3 % sur le Net Smelter Return (NSR) à Precious Earth Resources en échange de 500 000 actions American Eagle, qui seront ensuite annulées.
La société conservera une redevance NSR de 1 % sur le projet Kuta Ridge, situé stratégiquement à proximité de la mine Porgera de Barrick et de la mine Kainantu de K92. La redevance restante ne sera soumise à aucun droit de rachat par Precious Earth. La transaction, qui devrait se conclure dans les cinq jours ouvrables, a reçu une dérogation de la Commission des valeurs mobilières de l’Ontario concernant les exigences relatives aux offres publiques de rachat par l’émetteur.
American Eagle Gold (TSXV: AE) (OTCQB: AMEGF) hat eine strategische Transaktion im Zusammenhang mit seinem Kuta Ridge Gold Projekt in Papua-Neuguinea angekündigt. Das Unternehmen wird zwei Drittel seiner 3% Net Smelter Return (NSR)-Lizenzgebühr an Precious Earth Resources verkaufen und erhält im Gegenzug 500.000 American Eagle-Aktien, die anschließend zurückgezogen und annulliert werden.
Das Unternehmen behält eine 1% NSR am Kuta Ridge-Projekt, das strategisch in der Nähe der Porgera-Mine von Barrick und der Kainantu-Mine von K92 liegt. Die verbleibende NSR unterliegt keinen Rückkaufrechten von Precious Earth. Die Transaktion, die voraussichtlich innerhalb von fünf Geschäftstagen abgeschlossen wird, hat von der Ontario Securities Commission eine Ausnahmegenehmigung hinsichtlich der Anforderungen an Rückkaufangebote des Emittenten erhalten.
- Share count reduction through retirement of 500,000 shares, improving shareholder value
- Retention of 1% NSR in a strategically located gold project without buyback rights
- Streamlined royalty profile while maintaining exposure to potential upside
- Reduction of royalty interest from 3% to 1% in Kuta Ridge project
- Decreased exposure to potential future revenues from the project
Highlights:
American Eagle to sell two-thirds of the
3% NSR it holds in the Kuta Ridge Gold Project in exchange for 500,000 shares of American Eagle, which will be extinguishedAmerican Eagle Gold will retain a
1% NSR in the Kuta Ridge Gold ProjectKuta Ridge is located within a highly prospective gold belt in Papua New Guinea, close to Barrick's Porgera Mine and K92's Kainantu Mine.
Toronto, Ontario--(Newsfile Corp. - May 9, 2025) - American Eagle Gold Corp. (TSXV: AE) (OTCQB: AMEGF) is pleased to announce that it has entered into a definitive agreement with Precious Earth Resources Inc. ("Precious Earth") to sell a portion of net smelter return ("NSR") royalty of the Kuta Ridge project in Papua New Guinea in exchange for 500,000 common shares of the Company (the "Consideration Shares").
American Eagle presently holds a
"By monetizing a non-core asset, the Company has coordinated a shareholder-friendly transaction and reduced its share count, a modest achievement within the junior mining sector," said Anthony Moreau, Chief Executive Officer of American Eagle. "American Eagle retains a
The Agreement will be governed by and interpreted in accordance with the laws of the Province of Ontario and the federal laws of Canada. In connection with the repurchase of the Consideration Shares, the Ontario Securities Commission has granted American Eagle exemptive relief from the issuer bid requirements under Part 2 of National Instrument 62-104 Take Over Bids and Issuer Bids. This exemptive relief will facilitate the intended share repurchase under the terms of the transaction while ensuring compliance with applicable securities laws. Pursuant to the terms of the exemptive relief granted, closing the transaction will occur in five business days.
About Precious Earth Resources:
Precious Earth Resources Inc. (PER) is a Canadian-based, private corporation with
About American Eagle's NAK Project
The NAK Project lies within the Babine copper-gold porphyry district of central British Columbia. It has excellent infrastructure through all-season roads and is close to the towns of Smithers, Houston, and Burns Lake, B.C., which lie along a major rail line and Provincial Highway 16. Historical drilling and geophysical, geological, and geochemical work at NAK, which began in the 1960's, tested only to shallow depths. Still, the work revealed a very large near-surface copper-gold system that measures over 1.5 km x 1.5 km. Drilling completed by American Eagle in 2022, 2023, and 2024 returned significant intervals of high-grade copper-gold mineralization that reached beyond and much deeper than the historical drilling, indicating that zones of near-surface and deeper mineralization, locally with considerably higher grades, exist within the broader NAK property mineralizing system.
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About American Eagle Gold Corp.
American Eagle is dedicated to advancing its NAK copper-gold porphyry project in west-central British Columbia, Canada. The Company benefits from over
Anthony Moreau, Chief Executive Officer
416.644.1567
amoreau@oregroup.ca
www.americaneaglegold.ca
Q.P. Statement
Mark Bradley, B.Sc., M.Sc., P.Geo., a Certified Professional Geologist and 'qualified person' for the purposes of Canada's National Instrument 43-101 Standards of Disclosure for Mineral Properties, has verified and approved the information contained in this news release.
Forward-Looking Statements
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 the closing of the repurchase of Consideration Shares, the satisfaction of the conditions set forth in the exemptive relief order from the Ontario Securities Commission, its anticipated results at the Company's NAK project, and other matters ancillary or incidental to the foregoing. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Therefore, actual results might differ materially from those suggested in 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.sedarplus.ca.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the TSX Venture Exchange policies) accept responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/251424
FAQ
What is the share repurchase deal announced by American Eagle Gold (AMEGF)?
How much NSR royalty will American Eagle Gold retain in Kuta Ridge after the transaction?
Where is the Kuta Ridge Gold Project located and what makes it significant?
When will American Eagle Gold's (AMEGF) share repurchase transaction close?
