American Eagle Expands Babine Copper-Gold Exploration Area to 9,283 Hectares

en.Wedoany.com Reported - On August 27, American Eagle Gold completed its previously signed option agreement with Eagle Plains Resources, expanding its land package in the Babine porphyry copper-gold district in British Columbia, Canada, from approximately 1,632 hectares to approximately 9,283 hectares, an increase of approximately 470%. The transaction has received conditional approval from the TSX Venture Exchange and remains subject to final approval.

Under the agreement, American Eagle can earn up to a 80% interest in three mineral claim groups: Hearne Hill South, Jinx, and NAK NW. Hearne Hill South and two adjacent claims total approximately 5,303 hectares, located approximately 4.5 kilometers from the Company's NAK copper-gold porphyry project at their closest point. Combined with open claims staked by the Company in the Morrison area, American Eagle currently controls or holds the right to earn an interest in approximately 9,283 hectares of land.

American Eagle can initially earn a 60% interest in the three claim groups through staged exploration expenditures, cash payments, and share issuances. The agreement requires the Company to incur cumulative exploration expenditures of C$4.85 million, make cash payments of C$400,000, and issue 1.2 million common shares to Eagle Plains by December 31, 2031; obligations due by the end of 2027 include C$600,000 in exploration expenditures, C$100,000 in cash, and 200,000 shares. After earning the initial 60% interest, the Company can increase its interest to 80% through a one-time payment of C$1 million, of which up to half may be paid in shares.

Eagle Plains will retain a 2% net smelter return royalty after American Eagle exercises the initial option, of which one percentage point can be repurchased by American Eagle for C$2.5 million. American Eagle will serve as operator of the project throughout the earn-in period and will not charge operating fees during that phase; following the formation of a joint venture, parties will fund subsequent expenditures according to their ownership percentages.

The expansion also includes approximately 992 hectares of Morrison-area claims staked by American Eagle on its own. Following the completion of the option transaction and independent staking, the Company controls approximately 6,142 hectares of the former Pacific Booker Minerals Morrison land package, representing approximately 62.5% of the original 9,834-hectare claim area. The Morrison deposit itself is not included in the claims acquired by American Eagle in this transaction.

American Eagle plans to conduct historical data compilation, 3D magnetic inversion, infill soil geochemistry sampling, geological mapping, prospecting surveys, and ground geophysical surveys on the newly acquired claims during 2026–2027 to identify subsequent drill targets. This work will proceed in parallel with the 55,000-meter drill program currently underway at the NAK project.

The 2026 drill program at the NAK project comprises approximately 80 drill holes, with three drill rigs operating continuously, scheduled to run at least through April 2027. As of August 25, the Company has completed 18 drill holes, with six released holes totaling 5,305 meters of drilling. American Eagle has previously completed over 90,000 meters of drilling at NAK, and target screening on the newly acquired claims will leverage geological and geophysical data generated from the project.

American Eagle currently holds approximately C$50 million in cash. On August 17, a wholly owned subsidiary of South32 exercised its top-up right, subscribing for 660,000 common shares of American Eagle at C$1.09 per share for an investment of C$719,400, maintaining its 19.9% shareholding; the proceeds are planned for general corporate and working capital purposes.