American Eagle Gold Corp. (TSXV: AE) (" American Eagle " or the " Company ") is pleased to announce it has completed a purchase agreement for the Garden Gate Pass ("Garden Gate") property in the Cortez mining district, Nevada, USA. Garden Gate is a contiguous expansion of the Company's flagship Golden Trend property ("Golden Trend") and more than triples its land package (2,225 acres to 7,574 acres) immediately south of Barrick and Newmont's Cortez joint venture. American Eagle's Garden Gate and Golden Trend consolidation will be herein referred to as the Golden Gate Project ("Golden Gate").
The acquisition of Garden Gate significantly increases the search space for American Eagle Gold, covering the entire southern end of the Cortez trend window, and places the Company on the southern extensions of both the Cortez Hills and Goldrush structural trends. The lower plate geology throughout both properties remains largely untested and provides the potential for another major discovery on either trend.
"We have been targeting the acquisition of the Garden Gate for some time as it transforms American Eagle Gold into a Nevada district play within the Cortez Trend. The Cortez Trend already hosts three tier 1 deposits, yet its exploration potential is still abundant. Golden Gate now covers over thirty square kilometres of this highly prospective area of the Cortez Trend. Our VP of Exploration, Mark Bradley led the discovery team at Barrick's Goldrush, which is adjacent to Golden Trend, so there is nobody better suited to lead our team to a discovery," stated Anthony Moreau , CEO of American Eagle Gold.
Garden Gate Drilling remains on schedule for September 2021
The 2021 exploration program will be enlarged to cover the new acquisition, and the planned 2D seismic lines will be extended to provide data over Garden Gate Pass. The drill budget will also be increased to provide scout drilling over the entire land package.
The Company has entered into an asset purchase agreement dated as of June 28, 2021 , with Pyramid Lake LLC ("Pyramid Lake"), pursuant to which the Company has agreed to acquire Pyramid Lake's interest in the Project in exchange for consideration of an initial cash payment of $50,000 ; 200,000 common shares of the Company (each, a "Share"); advanced royalty payments starting at $15,000 , paid every six months, and an option granting Pyramid Lake a 3.0% net smelter returns royalty on the Project, with American Eagle having the right to buy one and a half (1.5%) at the time of a production decision for $1,000,000 .
Closing of the American Eagle Gold acquisition of the Project from Pyramid Lake is subject to receipt of approval of the TSX Venture Exchange. The Company made a $25,000 cash payment on the execution of the agreement, and the remaining $25,000 and shares are payable on the closing date, following receipt of regulatory approval. The Shares will be issued to Pyramid Lake on the closing date.
About American Eagle Gold Corp.:
American Eagle Gold is traded on the TSX Venture Exchange under the symbol 'AE' and is focused on exploring its flagship property, Golden Gate. The property is strategically situated on the Cortez trend, which hosts 3 large Carlin -type gold deposits operated by Barrick and Newmont's Joint Venture, Nevada Gold Mines (Pipeline, Cortez Hills and Goldrush). The property is located 10 km south of Cortez Hills and 5 km south of Goldrush and shows many of the same geological characteristics as at the two deposit areas.
American Eagle's Vice President of Exploration, 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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the TSX Venture Exchange policies) accepts responsibility for the adequacy or accuracy of this release. 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 listing of the Company's Common Shares on the TSX Venture Exchange and the anticipated timing thereof, the planned work program on the Golden Trend project and the timing of the program milestones. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any 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.sedar.com .
SOURCE American Eagle Gold Corporation
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