American Eagle Gold Receives $29 Million Funding to Target a Multi-Billion Ton Gold-Copper Deposit British Columbia

• American Eagle Gold has a pathway to a multi-billion ton gold and copper deposit in British Columbia with nearly $40 million in the bank to fund aggressive drilling.
• Two major mining companies, Tech and South32, have validated the project with large investments, giving American Eagle credibility and three years of funding.
• South32 made a $29 million equity investment towards Americal Eagle Gold with no warrants after visuals of impressive drill core, significantly de-risking the project.
• The deposit has only been 20% drilled so far with substantial expansion potential. The goal is to drill extensively to prove out the scale before an eventual buyout.
• American Eagle  stock is up 30X in two years but the CEO believes it still has 10X potential with the expanded drilling.

Junior mining company American Eagle Gold (TSXV:AE) is rapidly advancing what could be the next major gold discovery. The company's flagship project, NAK copper-gold porphyry project, located in mining-friendly British Columbia, boasts a pathway to a multi-billion ton gold and copper deposit with impressive drill results to date.

Confidence Backed by Major Mining Companies

In a strong vote of confidence, two major mining companies, Australia-based Tech and diversified miner South32, have taken substantial equity positions in American Eagle Gold. Their investments provide external validation and credibility to the project. South32 made a game-changing $29 million investment in AE after visually inspecting impressive drill core. As AE CEO Anthony Moreau noted,

"A $29 million investment on equity with no warrants is significant and it completely de-risks us."

Aggressive Drilling to Prove Scale

With nearly $40 million in the bank from the investments, American Eagle now has a three-year runway to aggressively drill the project. To date, only about 20% of the prospective area has been drilled.

"We tripled in value when we didn't drill from January until June on marketing getting the word out," explained Moreau. "I think our money is better spent doing marketing during the offseason [...] If these visuals come out the way I think they're going to come out, then I think they'd be in line with everyone else. But now we have the ability to do these big expensive step outs because now the deal for me is like how do we value all that area that we haven't drilled yet."

The drilling will focus on expanding the deposit in all directions to prove out the multi-billion ton potential before an eventual buyout by a major mining company.

Interview with CEO Anthony Moreau

The Path to a Billion Dollar Valuation

American Eagle's stock is up an impressive 30 times in value over the past two years, but CEO Anthony Moreau believes there is still substantial upside. His interim goal is to reach a billion dollar valuation for the company.

"I think we have the potential to have another 10x on us," stated Moreau. "Let's get to billion dollar valuation, then look at what the share price does, that's how we make money. 30 times since I think literally this time two years ago, 4 times since the beginning of this year."

The company's tightly held share structure, with about 60-63% of shares owned by insiders and the two major mining company investors, provides confidence.

"Another 20% owned by insider Stephen Stewart or corporate. So about 60 to 63% is tightly held, not going to be sold, so you got about 37% float," explained Moreau.

Conclusion

American Eagle Gold represents a compelling speculation for investors seeking outsized returns in the junior mining sector. The company provides exposure to an emerging gold-copper discovery that has already attracted major investments from two leading mining companies.

The Investment Thesis for American Eagle Gold

• Exposure to a potential multi-billion ton gold-copper discovery
• Backed by major mining companies South32 and Tech through large, validating investments
• Fully funded for three years of aggressive expansion drilling to prove the scale
• Tightly held share structure with 63% owned by insiders and major mining investors
• Exceptional leverage to rising gold and copper prices with a mining-friendly location
• Proven management team with a track record of marketing and adding value
• 30X return in two years for early investors with potential for another 10X

Macro Thematic Analysis

The current macro environment provides a highly favorable backdrop for gold and copper investments. Unprecedented global stimulus in response to the COVID-19 pandemic has raised concerns about currency debasement and future inflation, driving strong investor interest in gold as a safe haven and inflation hedge.

Meanwhile, the rapid expansion of clean energy technologies and electric vehicles is causing a surge in copper demand that is expected to outstrip current supply. New copper discoveries are needed to fill the impending supply gap and fuel the global energy transition.

Companies like American Eagle Gold sit at the intersection of these two powerful macro trends. As CEO Anthony Morrow explained succinctly:

"Find me a copper play that has a pathway to multi-billion ton deposit that's in a safe jurisdiction with road access that's not up in the Andes or in the Arctic. There's not, with two majors already on your registry."

With ample funding in place, American Eagle will be aggressively drilling to expand the deposit and prove out a globally significant resource. Given the tightly held share structure and exceptional leverage to rising gold and copper prices in a top mining jurisdiction, AE appears poised to continue delivering impressive gains. For investors comfortable with junior mining risks, American Eagle Gold is one to watch closely.