American Creek Announces Closing of $2,260,000 Private Placement, Including $1,000,000 Strategic Investment with Eric Sprott
Cardston, Alberta--(Newsfile Corp. - September 6, 2019) - American Creek Resources Ltd. (TSXV: AMK) (the "Company" or "American Creek") is pleased to announce that it has closed its non-brokered private placement financing previously announced August 23, 2019 as increased August 25 & 27, 2019. Under this financing, the Company has issued 5,666,667 flow-through units for gross proceeds of $510,000.03 and 21,875,000 non flow-through units for gross proceeds of $1,750,000. In connection with this financing, the Company paid a total of $70,000 and issued a total of 826,388 warrants as finder's fees ($15,000 and 166,666 warrants to GloRes Capital Inc.; $20,000 and 222,222 warrants to Leede Jones Gable Inc.; and $35,000 and 437,500 warrants to Red Cloud Klondike Strike Inc.). Each finder's warrant is exercisable for one common share at a price of $0.12 for two years; except that, from and after January 7, 2020, if the closing price of the Company's shares exceeds $0.15 for 30 consecutive days, the Company may, at any time thereafter, accelerate the expiry date of the warrants to the date that is 15 days following the date on which the Company issues notice to all of the warrant holders of the new expiry date. All securities issued under this private placement are subject to a hold period expiring January 7, 2020, in accordance with applicable securities laws and the policies of the TSX Venture Exchange.
Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired 12,500,000 non flow-through units of the Company under this private placement for a total consideration of $1,000,000. As previously disclosed in the Company's news release dated August 8, 2019, and Mr. Sprott's Early Warning Report of same date, prior to this private placement, Mr. Sprott beneficially owned or controlled 20,000,000 common shares and 20,000,000 warrants of the Company.
As a result of this private placement, Mr. Sprott is now the beneficial owner of 32,500,000 common shares of the Company and 32,500,000 warrants of the Company representing approximately 9.7% of the issued and outstanding common shares of the Company on a non-diluted basis and 17.8% 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 continuing support and further investment. We anticipate that this strategic relationship will add further credibility to American Creek's projects and future potential. We also look forward to working with Red Cloud in significantly increasing market awareness of the potential of those projects."
About American Creek
American Creek is a Canadian junior mineral exploration company with 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 Gold/Walter Storm as well as the 100% owned past producing Dunwell Mine.
A major drill program is presently being conducted at Treaty Creek by JV partner and operator Tudor Gold. There are now two drills working on the Goldstorm zone with the objective of defining a significant maiden gold resource. The last hole reported included a 780 meter intercept of 0.683 g/t gold including a higher grade upper portion of 1.095 g/t over 370.5 meters.
The Treaty Creek Project is a Joint Venture with Tudor Gold owning 60% and acting as operator. American Creek and Teuton Resources each have 20% interests in the project. American Creek and Teuton are both fully carried until such time as a Production Notice is issued, at which time they are required to contribute their respective 20% share of development costs. Until such time, Tudor is required to fund all exploration and development costs while both American Creek and Teuton have "free rides".
A drill program also currently underway on the 100% owned Dunwell Mine property located near Stewart.
The Corporation 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/47621