Cardston, Alberta--(Newsfile Corp. - July 29, 2019) - American Creek Resources Ltd. (TSXV: AMK) ("the Corporation") ("American Creek") today announced that it intends to complete a non-brokered private placement with Eric Sprott's private company, 2176423 Ontario Ltd. consisting of the issuance of 20,000,000 units ("Units") at a price of $0.05 per Unit for proceeds of $1,000,000.
Each Unit will consist of one common share of the Corporation ("Common Share") and one non-transferrable Common Share purchase warrant ("Warrant"). Each Warrant may be exercised for one additional Common Share at a price of $0.065 for a period of 24 months from the closing date of the Offering. The Warrants will be subject to an acceleration provision which provides that in the event that the market closing price of the Corporation's shares exceeds $0.12 for 30 consecutive days, the Corporation may within 5 days after such an event, provide notice to the Warrant holder of early expiry and thereafter, the Warrants will expire on the date which is 15 days after the date of the notice to the Warrant holder.
As part of this financing and the issuing of the Units, Mr. Sprott has agreed to sign a voting agreement in which he will vote with management in the event of a hostile takeover bid, and to also vote with management if management agrees to accept a takeover bid.
Darren Blaney, President & CEO of American Creek, stated: "We welcome Mr. Sprott's involvement and significant contribution. This is an endorsement of not only the potential of the Treaty Creek project but also of our other projects we've been able to successfully acquire. With Mr. Sprott's support and with market conditions improving, we very much look forward to working together to advance these projects and create additional value for our shareholders."
The securities are offered to qualified purchasers in reliance upon exemptions from prospectus and registration requirements of applicable securities legislation. No finder's fees will be paid related to this financing.
Proceeds will be used for general operating purposes including settling current debt and advancing the Corporation's portfolio of mineral properties.
This private placement is subject to approval by the TSX Venture Exchange.
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.
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".
Tudor is presently conducting a major drill program at Treaty Creek with the objective being to define a significant gold resource.
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.