Cunningham Mining has announced a financial commitment from GEM Digital amounting to $153m.
The funding is facilitated through a token subscription agreement, which will span a 36-month term following the listing of Cunningham Mining’s token on a centralised exchange.
Under the agreed terms, Cunningham Mining retains control over the timing and amount of the drawdowns, without any obligation to draw a minimum amount.
The closure of this financing deal is contingent upon meeting standard closing conditions and obtaining the necessary regulatory approvals.
This investment is earmarked for the proposed acquisition of American Creek Resources.
In June 2024, Cunningham Mining signed a non-binding and arm’s-length letter of intent to acquire American Creek Resources.
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By GlobalData
Cunningham Mining CEO Ryan Cunningham said: “We are excited to partner with GEM Digital for this significant token subscription facility, which will enable the company to acquire American Creek Resources and further expand our presence in the gold exploration sector.
“American Creek Resources’ full 20% carried interest of the Treaty Creek Gold deposit will be added and monetised onto the balance sheet of our pending RWA-based NGTGOLD Token containing over six million ounces of in-ground gold resource.
“This acquisition aligns with our strategic growth plans and will allow us to capitalise on the promising opportunities in the gold market.”
The letter of intent initiates the due diligence process and negotiations for a potential transaction between American Creek Resources and Cunningham Mining.
If successful, Cunningham would acquire all issued and outstanding securities of American Creek, thereby gaining control over the company’s 20% fully carried interest in the Treaty Creek Property.
The Treaty Creek Property lies in the Golden Triangle region of north-west British Columbia, Canada.
