February 28, 2011 TSX-V: AMK
Raymond, Alberta… American Creek Resources Ltd. (the “Corporation”) today announced that it has closed the non-brokered private placement offering originally announced on February 4, 2011. The offering was oversubscribed with the Corporation exercising the 15% over-allotment option. The Corporation raised gross aggregate proceeds totaling $862,500 by issuing 6,900,015 flow-through units (“FT Units”) at a price of $0.07 per FT Unit for proceeds of $483,001 and issuing 6,324,982 non-flow-through units (“NFT Units”) at a price of $0.06 per NFT Unit for proceeds of $379,499. Insiders of the Corporation purchased 4,134,315 units.
Each FT Unit consists of one flow-through common share of the Corporation (“FT Share”) and one-half of one non-transferrable common share purchase warrant (a “Warrant”). Each whole Warrant entitles the holder to purchase one non-flow-through common share (“NFT Share”) at an exercise price of $0.10 for a period of one year from the date of issuance of the Warrant.
Each NFT Unit consists of one NFT Share and one-half of one non-transferrable common share purchase warrant (a “Warrant”). Each whole Warrant entitles the holder to purchase one NFT Share at an exercise price of $0.10 for a period of one year from the date of issuance of the Warrant.
The Corporation paid finder’s fees consisting of $21,694 cash and 318,716 non-transferrable warrants to certain arm’s length finders. All securities issued in this private placement are subject to a hold period of 4 months and a day from issuance.
The Corporation is also pleased to announce that it has settled debts in the amount of $701,447.58 by issuing 11,690,793 common shares as proposed in the previous news release dated February 22, 2011. This issuance has been approved by the TSX Venture Exchange.
Allan Burton, President and CEO, stated: “All of the debt we retired was accrued to the geologists, employees and officers of American Creek. Their willingness to take shares, rather than cash, shows not only their dedication to the company, but their enthusiasm for and commitment to the company’s future as well.”
American Creek Resources Ltd. is a Canadian junior mineral exploration company focused on the acquisition, exploration and development of mineral deposits within the Province of British Columbia, Canada.