South32 has reaffirmed its confidence in American Eagle Gold Corp. and the potential of the NAK copper-gold project.
The company elected to exercise its top-up right to maintain a 19.9 per cent stake in the Canadian explorer.
The decision comes as American Eagle finalises its 100 per cent acquisition of the NAK project in British Columbia, positioning the asset for significant development activity in 2025.
To maintain its ownership level under the investor rights agreement signed in November 2024, South32 will purchase 1,156,000 charity flow-through shares at $1.19 per share ($C0.71), contributing approximately $918,381 ($C820,000) in gross proceeds.
The diversified miner participated as an end buyer and acquired the shares at a discount to the issue price, in line with the terms of the agreement.
“South32’s continued support speaks to the quality of the NAK project and the work our team has done,” American Eagle chief executive officer Anthony Moreau said.
“We’ve planned a bold drill program to grow the size and grade of the deposit. American Eagle is well capitalised with over $36 million and we are in a strong position to move NAK forward and show its potential.
“We expect 2025 to be a pivotal year, with steady drill results throughout.”
South32’s latest move strengthens its position in a promising copper-gold district at a time when global demand for critical minerals is accelerating.
Its involvement also serves as a strong endorsement of NAK’s long-term development prospects.
The shares will qualify as flow-through shares under Canadian tax law, with funds directed towards eligible exploration expenditures by the end of 2026. Closing of the offering is expected on or before June 11, 2025, subject to regulatory approval.
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