American Creek Announces Closing of $1,000,000 Strategic Financing with Eric Sprott
Cardston, Alberta--(Newsfile Corp. - August 8, 2019) - American Creek Resources Ltd. (TSXV: AMK) (the "Company") is pleased to announce that it has closed its private placement financing with a private company beneficially owned by Eric Sprott, previously announced on July 29, 2019, and issued 20,000,000 units for gross proceeds of $1,000,000. No finder's fees were paid in relation to this financing. All securities issued under this private placement are subject to a hold period expiring December 9, 2019 in accordance with applicable securities laws and the policies of the TSX Venture Exchange.
In conjunction with this financing, Mr. Sprott signed a voting agreement with the Company pursuant to which he agreed to vote his shares of the Company in accordance with the recommendation of the Company's board of directors in any M&A transaction that may occur during the next five years.
Eric Sprott, through 2176423 Ontario Ltd., a private company which is beneficially owned by him, acquired 20,000,000 units of the Company pursuant to this private placement. Prior to the private placement, Mr. Sprott did not beneficially own or control any securities of the Company. As a result of this private placement, Mr. Sprott is now the beneficial owner of 20,000,000 common shares of the Company and 20,000,000 warrants of the Company representing approximately 6.5% of the issued and outstanding common shares of the Company on a non-diluted basis and 12.3% on a partially diluted basis.
The units were acquired by Mr. Sprott, through 2176423 Ontario Ltd., for investment purposes. Mr. Sprott may acquire additional securities of the Company including on the open market or through private acquisitions or he may sell securities of the Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of 2176423 Ontario Ltd.'s related early warning report will appear on the Company's profile on SEDAR (www.sedar.com) and may also be obtained by calling (416) 362-7172 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
Darren Blaney, President & CEO of the Company, stated: "We very much appreciate Mr. Sprott's support and look forward to working with the Sprott team in both increasing market awareness for American Creek's projects as well as advancing those projects to their full potential."
About American Creek
The Company holds a strong portfolio of gold and silver properties in British Columbia.
Three of those properties are located in the prolific "Golden Triangle": the Treaty Creek and Electrum Joint Venture Projects with Tudor (Walter Storm), as well as the 100% owned past producing Dunwell Mine.
A major drill program is presently underway at the Treaty Creek project with the objective being to define a significant gold resource.
The Company also holds the Gold Hill, Austruck-Bonanza, Ample Goldmax, Silver Side, and Glitter King properties located in other prospective areas of the province.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Readers should not place undue importance on forward-looking information and should not rely upon this information as of any other date. Actual results could differ materially because of factors discussed in the Company's management discussion and analysis filed with applicable Canadian securities regulators, which can be found under the Company's profile on www.sedar.com. The Company does not assume any obligation to update any forward-looking statements.
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