Cunningham Mining to acquire American Creek for US$153M
The deal is at a premium of more than 155%
American Creek Resources announced it entered into a definitive agreement with privately owned Cunningham Mining (CML).
CML will acquire American Creek for C$0.43 per share in an arm's-length, all-cash transaction, or a total of around C$207 million (around US$153 million), which is a 155% premium on American Creek's 30-trading day volume weighted average price for the period ending September 4.
The companies already signed a letter of intent for the deal in June, at which point the deal represented a 274% premium on American Creek's share price.
"We believe this proposed transaction may provide not only a liquidity event for our longstanding shareholders but also represents an opportunity for shareholders to potentially realise a 250% plus premium to the present market valuation of their equity in the company," American Creek's chief executive Darren Blaney said at the time.
American Creek owns the Austruck-Bonanza gold property near Kamloops and 20% of the Treaty Creek project, a joint venture with Tudor Gold and Teuton Resources, in the Golden Triangle of British Columbia, Canada.
Treaty Creek's Goldstrom deposit, which is the current exploration focus, has an indicated mineral resource of 27.87Moz of gold equivalent at 1.19gpt and inferred mineral resources of 6.03Moz of gold equivalent at 1.25gpt.
"The indirect acquisition in the Treaty Creek Property complements our existing portfolio of assets in the Golden Triangle," CML president Ryan Cunningham said.
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