American Creek Further Extends the Plan of Arrangement
American Creek Resources (TSXV: AMK)
Has entered into a second amendment agreement with Cunningham Mining to amend the previously announced arrangement agreement between the Purchaser and the Company dated September 5, 2024, as amended December 30, 2024 pursuant to which, among other things, the Purchaser will acquire all of the issued and outstanding common shares of American Creek by way of a statutory plan of arrangement.
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| American Creek | TSX.v : AMK | |
| Stage | Exploration | |
| Metals | Gold | |
| Market cap | C$99 m @ 22c | |
| Location | Golden Triangle, B.C. | |
| Website | www.americancreek.com |
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Comment
Just as I predicted, another delay, and I wonder why?
This is a novel approach to a financing, and I don’t think investors understand it nor are excited by it.
I have reduced my holding here and may sell the remainder whilst other gold producers are going up in value.
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American Creek Resources Announces Further Amendment to Plan of Arrangement with Cunningham Mining
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Cardston, Alberta–(Newsfile Corp. – February 3, 2025) –American Creek Resources Ltd. (TSXV: AMK) (OTCQB: ACKRF)(the “Company” or “American Creek“) announces that it has entered into a second amendment agreement (the “SecondAmendment Agreement“) with Cunningham Mining Ltd. (the “Purchaser“) to amend the previously announced arrangement agreement between the Purchaser and the Company dated September 5, 2024, as amended December 30, 2024 (the “Arrangement Agreement“) pursuant to which, among other things, the Purchaser will acquire all of the issued and outstanding common shares of American Creek by way of a statutory plan of arrangement (the “Arrangement“) under Division 5 of Part 9 of theBusiness Corporations Act(British Columbia).
Under the Second Amendment Agreement, the Outside Date (as defined in the Arrangement Agreement) has been extended from January 31, 2025 to March 15, 2025, provided the Purchaser pays the Company CAD$150,000 by February 20, 2025.
Thereafter, the Outside Date may be further extended from March 15, 2025 to April 30, 2025, provided the Purchaser pays the Company an additional US$2,000,000 by March 15, 2025, which date may be accelerated in certain circumstances. A copy of the Second Amendment Agreement will be available on the Company’s profile on SEDAR+ atwww.sedarplus.ca.
The extension fees payable under the Second Amendment Agreement, similar to the $300,000 signing fee paid by the Purchaser under the Arrangement Agreement, will be used by the Company for expenses incurred in connection with the Arrangement and working capital purposes.
For further information on the Arrangement, please see the Company’s news releases dated September 6, 2024, October 2, 2024, October 31, 2024, December 2, 2024, and December 31, 2024, which are available on American Creek’s profile on SEDAR+ atwww.sedarplus.ca.
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“Management considered a number of factors when negotiating this extension, including:
(i) while awaiting closing of the transaction, the Company is able to conduct all business and operate fully in the ordinary course;
(ii) the Company remains able to consider and, if deemed appropriate, approve a superior proposal under the terms of the Arrangement Agreement without a break fee being payable;
(iii) the original signing fee previously paid by the Purchaser has fully covered all of the Company’s legal and operating expenses associated with the pending Arrangement to date, including all normal course operating expenses, and together with the new extension fees, will fund the Company’s legal and operating expenses while we await closing of this transaction; and
(iv) we received an overwhelming mandate from shareholders at the Company’s recent AGM to move forward with this transaction.
Accordingly, we feel that this amendment and extension is in the best interests of the Company and we are committed to working with the Purchaser to close this transaction.”
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To read the full news release please click HERE
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The live gold price can be found HERE
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Disclosure
At the time of writing the author holds shares in American Creek
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