“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 realize a 250% plus premium to the present market valuation of their equity in the company,” American Creek’s CEO Darren Blaney stated in the June 6 news release.
Compared to the last closing price before the definitive agreement, the consideration still represented a premium of approximately 153%. By market close on Friday, American Creek’s shares had shot up 81.6% to C$0.34 for a market capitalization of C$155 million ($114 million).
The proposed sale also has the endorsement of Canadian mining billionaire Eric Sprott, who, as American Creek’s largest shareholder (15.5% stake), has pledged to vote in favour of the transaction.
Treaty Creek project
American Creek’s main asset is a 20% fully carried interest in the Treaty Creek project located…
