American Eagle Gold (TSXV:AE) - $29 Million Major Funding for Multi-Billion Ton Copper-Gold in BC

Nov 19, 2024

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Interview with Anthony Moreau, CEO of American Eagle Gold

Our previous interview: https://www.cruxinvestor.com/posts/american-eagle-gold-tsxvae-massive-copper-grades-over-huge-widths-4841

Recording date: 14th November 2024

American Eagle Gold offers investors an attractive speculation on the emerging gold-copper discovery in mining-friendly British Columbia. The company's flagship, NAK Copper-Gold project, has already delivered impressive drill results that point to multi-billion ton potential, attracting major investments from two leading mining companies.

In a strong show of confidence, major miners Tech and South32 have taken substantial equity positions in American Eagle, validating the project's potential. South32 made a game-changing $29 million investment with no warrants after visually inspecting drill core. As CEO Anthony Moreau explained, "A $29 million investment on equity with no warrants is significant and it completely de-risks us."

Armed with nearly $40 million on hand, American Eagle now has a three-year runway to aggressively drill and expand the deposit. To date, only about 20% of the prospective area has been explored, leaving substantial room for growth. "I think we have the potential to have another 10x on us," stated Moreau, who believes the company is on track to reach a billion dollar valuation.

The NAK deposit has a unique characteristic - in the north, the mineralization is more copper-rich with a 70-30 copper to gold ratio, while in the south it transitions to a more gold-rich. This provides AE with exposure to two metals with compelling supply-demand fundamentals. Copper is a critical metal for the global energy transition and faces a looming supply deficit, while gold stands to benefit from a rising tide of inflation concerns and geopolitical risks. As Moreau quipped, "Gold companies want copper now. It's not a competition."

American Eagle has already delivered a 30x return for investors over the past two years, and a tightly held share structure provides confidence for further gains. With about 60-63% of shares owned by insiders and the two major mining investors, only about 37% of shares are in retail hands.

The company is now focused on stepping out aggressively with the drill bit to further expand the resource. "For any retail that comes out, the more we de-risk ourselves and the higher valuation we get, now these banks and these funds can start coming in," explained Moreau. "We've seen that recently - I saw a lot of funds come in."

For investors seeking outsized returns in the junior mining space, American Eagle Gold provides an attractive combination of geologic potential, major miner backing, and a proven management team focused on marketing and growth. With drills turning to further prove out a globally significant resource, AEG is well positioned to continue rewarding shareholders. Watch this rising copper-gold story closely.

View American Eagle Gold's company profile: https://www.cruxinvestor.com/companies/american-eagle-gold