September 16, 2021
American Eagle Gold Corp. (TSXV:AE, Not Rated, Timothy Lee) announced it has entered into a lease agreement with an option to purchase 100% of the Cerros Rojos project, located in eastern Nevada. American Eagle has agreed to assume all the rights and interests in the lease for payment of an aggregate of C$47,839.92 in cash. To maintain the lease, a cash payment of US$5,000 every six months for the first five years of the term of the lease must be made, including a cash payment of US$10,000 every six months beginning on the fifth anniversary of the effective date of the lease during the duration of the term of the lease. This is expected to continue until commercial production commences on the Cerros Rojos property. AE will then grant a 3.0% NSR royalty, which may be reduced to 1.0% through the repurchase of the royalty at 1.0% increments at a price of US$1,000,000 per increment. This is an early-stage exploration project that has had some historic drilling, including one hole that encountered 0.57 g/t Au over 12.2m of near-surface oxide mineralization. The initial focus of the project is on Carlin-type deposits. The company is primarily focused on its Golden Gate project, which is located just south of the major Cortez mining complex in central Nevada, but this agreement gives them a second project, located in an area of Nevada that has been underexplored, particularly with regards to Carlin-type deposits. Read more
