RAYMOND, AB, Sept. 1 /CNW/ - American Creek Resources Ltd. (the
"Corporation") is pleased to announce that on August 31, 2009 it entered into
and closed a purchase agreement (the "Purchase Agreement") with a group of
investors (the "Investment Group"). Pursuant to the Purchase Agreement, the
Investment Group has invested an aggregate of $850,000 in the Corporation (the
"Investment"). In return for the Investment, the Investment Group has received
2,833,330 units ("Units") of the Corporation at a price of $0.30 per Unit.
Each Unit consists of one common share of the Corporation ("Common Share") and
one non-transferable warrant ("Warrant"). Each Warrant may be exercised for
one additional Common Share at a price of $0.40 per Common Share for a period
of 24 months from the date of closing of the Investment, provided that the
Warrants will expire if not exercised within 15 days from receipt by the
holder of written notice from the Corporation that the Common Shares have a
volume-weighted trading price of $0.80 or higher for 10 consecutive trading
days (the "Accelerated Expiry"). The Investment Group has agreed that
1,416,665 Units acquired will be subject to a two-month hold period (the
"Voluntary Hold Period") in addition to the four month statutory hold period
(the "Statutory Hold Period"). The Corporation has agreed that the Accelerated
Expiry will not be exercised until the Statutory Hold Period or Voluntary Hold
Period, as applicable, has expired. All securities issued in connection with
this transaction are subject to a hold period which expires on December 31,
2009 or February 28, 2010 respectively.
In addition, the Corporation has agreed that, upon the exercise of its
option to acquire a 51% interest in the Treaty Creek Property pursuant to its
option agreement with Teuton Resources Corporation, it will grant to the
Investment Group: (i) a 2% net smelter returns royalty over its interest in
certain mineral claims; and (ii) a 1% net smelter returns royalty over its
interest in certain other mineral claims, which comprise the Treaty Creek
Property (together the "Royalties").
This transaction has been conditionally accepted by the TSX Venture
Exchange (the "Exchange"). The proceeds from the Investment will be used to
finance the Corporation's ongoing exploration and development activities and
for general working capital purposes.
The Corporation also announces that an aggregate of 1,135,000 incentive
stock options ("Options") have been granted to certain directors, officers,
consultants and employees of the Corporation. The Options are exercisable at
an exercise price of $0.28 per share for a term of 5 years. Common shares
which may be acquired upon exercise of the Options shall be subject to a hold
period which will expire on December 31, 2009.
About American Creek Resources Ltd.
The Corporation is a Canadian mineral exploration company focused on the
acquisition, exploration and development of mineral deposits within the
Province of British Columbia, Canada.
Certain information contained in this news release constitutes
forward-looking statements regarding the Corporation's mineral properties.
Forward looking statements are frequently characterized by words such as
"plan", "expect", "project", "intend", "believe", "anticipate" or statements
that certain events or conditions "may" or "will" occur. Forward-looking
statements are based on the reasonable opinions and estimates of management of
American Creek and are subject to a variety of risks, uncertainties and other
factors that could cause actual events or results to differ materially from
those projected in the forward-looking statements. These factors include: the
inherent risks involved in the exploration and development of mineral
properties, uncertainties involved in the interpretation of drill results and
other geological data, fluctuating commodity prices, unforeseen permitting
requirements, changes in environmental laws or regulations, the possibility of
project cost overruns or unanticipated costs and expenses, weather conditions,
the availability of contractors for equipment and services, the availability
of future financing and general business and economic conditions. Such
statements are also based on a number of assumptions which may prove to be
incorrect, including assumptions about general business and economic
conditions being accurate, the timing and receipt of regulatory approvals for
projects and operations, the availability of financing, the ability to secure
equipment and labour, and American Creek's ongoing relationship with third
parties. The foregoing factors, risks and assumptions are not exhaustive.
Events or circumstances could cause actual events or results to differ
materially from those estimated or projected and expressed in, or implied by,
these forward-looking statements. Accordingly, readers should not place undue
reliance on forward-looking statements. These forward-looking statements are
as of the date they are made and American Creek disclaims any obligation to
update any forward-looking statements, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Darren Blaney at: Phone: (403) 752-4040, Fax:
(403) 752-4020 or Email: firstname.lastname@example.org; Information relating to the
Corporation is available on its website at www.americancreek.com