American Creek Resources Ltd. (TSX-V: AMK) (“the Corporation”) today announced that it has closed its second and final tranche of the non-brokered private placement (“the Offering”) previously announced on April 21, 2017. The original $300,000 private placement was over-subscribed and was increased to accommodate the additional subscriptions. A total of 12,500,000 units (“Units”) have now been issued at a price of $0.05 per Unit for proceeds of $625,000 (which sum includes the first tranche of 3,060,000 Units for $153,000 closed in April, as announced on April 25, 2017).
Each Unit consisted of one common share of the Corporation (“Common Share”) and one non-transferrable Common Share purchase warrant (“Warrant”). Each Warrant may be exercised for one additional Common Share at a price of $0.08 for a period of 24 months from the closing date of the Offering. The Warrants are subject to an acceleration provision which provides that from and after the date that is four months and 1 day after the closing date, if the closing price of the Corporation’s shares on the TSX Venture Exchange exceeds $0.12 for 20 consecutive trading days, then the Corporation may provide notice to the Warrant holders of early expiry and thereafter, the Warrants will expire at 4:00pm MST on the date which is 15 business days after notice to the Warrant holders.
The Common Shares and Warrants issued in this Offering are subject to a hold period of four months plus a day from issuance. Proceeds will be used for general operating purposes including settling current debt.
The Corporation has also granted 1,900,000 incentive stock options under the Corporation’s stock option plan to certain Directors, Officers and contractors of the Corporation. The options were granted at a deemed price of $0.05 and are exercisable until May 29, 2027. The incentive options are subject to a hold period of four months and a day from issuance.
The private placement and granting of options is subject to approval by the TSX Venture Exchange.
About American Creek
American Creek holds a strong portfolio of gold and silver properties in British Columbia. Three of those properties are located in the prolific “Golden Triangle”; the Treaty Creek and Electrum joint venture projects with Tudor Gold (Walter Storm) as well as the 100% owned past producing Dunwell Mine.
The Corporation also holds the Gold Hill, Austruck-Bonanza, Ample Goldmax, Silver Side, Red Tusk and Glitter King properties located in other prospective areas of the province.