KEY POINTS
American Creek shareholders will receive a premium payout in the $152 million sale.
Treaty Creek, a prized mining asset, is part of the deal.
Cunningham Mining plans to fund future projects through digital tokens.
American Creek Resources has recently signed a record deal with Cunningham Mining Ltd. worth $ 152 million. This transaction, initiated back in June, is finally official, offering American Creek’s investors a significant payout and opening new doors for Cunningham in the mining world.
Currently, the two have settled on an all-cash deal through which Cunningham will acquire all the shares of American Creek at a premium. June saw the sale which was done at 43 cents per share significantly up from the previous price by 274%. While there are some changes in the market, the shares are still being sold at 153% markup compared with recent prices. In fact, as of when the deal was proposed, the stock for American Creek had already surged more than 80%, reflecting the interest of the market in this transaction.
Main support from the mining tycoon
This deal also has support from one of the most successful mining tycoons in Canada by the name of Eric Sprott. He owns 15. 5%, and has become a shareholder of American Creek and has vociferously endorsed the sale to increase its 5-percent stake urging other shareholders to do the same. Whatever his involvement is, it makes this already very speculative transaction all the more sure.
The chief asset being offered in this sale is Saskatchewan-based American Creek’s 20% interest in the Treaty Creek project. This site is located in the province of British Columbia’s Golden Triangle, a known region of the said deposits of gold and copper. Treaty Creek is adjacent to some of the biggest gold deposits in the world, notably to Seabridge Gold’s KSM project, the world’s biggest gold reserve. This region is blessed with all kinds of mineral resources that are essential in the production line; thus, Cunningham is lucky to have them in his possession.
Among all the resources discovered within the Treaty Creek, the most valuable is Goldstorm which contains 27 million ounces of gold. The gold equivalent is estimated at 9 million ounces, and silver is estimated at 77 million ounces. Other prospects within Treaty Creek property: EUREKA, Calm before the storm, and Perfect Storm indicate that the place has a lot of opportunities for further discoveries.
Cunningham’s bold new mining plans
This is the start of a new chapter in Cummingham. The company has recently acquired the Nugget Trap claims which is also located in the Golden Triangle and this region has been confirmed to host good values of gold and silver.
By creating digital tokens for investors, Cunningham hopes to finance projects more efficiently. Last month, the company announced it had secured a $153 million token subscription facility to help pay for its American Creek acquisition. The facility will last for 36 months and launch after Cunningham lists its tokens on a centralized exchange.
This innovative approach could change the way mining projects are financed, making it easier for everyday investors to own a piece of major gold mining operations.
