American Eagle bids for Pacific Booker to add BC asset

Canadian explorer American Eagle Gold (TSXV: AE; US-OTC: AMEGF) offered to buy Pacific Booker Minerals (TSXV: BKM; NYSE-MKT: PBM), arguing that the unsolicited deal offers a “new path forward” for the long-stalled Morrison copper-gold project.

Toronto-based American Eagle is offering 1.41 of its shares for each Pacific Booker share, valuing the target at about $1.76 per share, a 31% premium to Monday’s close and implying an equity value of roughly $31 million ($22 million), according to a statement issued Tuesday. The transaction would leave Pacific Booker shareholders with about 10% of the combined company.

If successful, the acquisition would combine Pacific Booker’s Morrison deposit with American Eagle’s nearby NAK project — creating what the would-be acquirer describes as a unified Babine district platform with potential synergies in infrastructure, permitting and development sequencing.

Pacific Booker shares surged 37% to C$1.85 Tuesday afternoon in Toronto, past American Eagle’s offer price. The stock is now at its highest level since February 2022. American Eagle fell 0.8% to $1.24 for a market value of about $239 million.

Permitting setbacks

American Eagle’s plan centres on resetting development at Morrison, which has been effectively dormant for more than a decade following permitting setbacks. The project’s value can be “significantly enhanced” if repositioned within a broader regional strategy rather than advanced as a standalone asset, American Eagle says.

A key driver behind the bid is support from the Lake Babine Nation, on whose traditional territory the Morrison project sits.

Lake Babine Nation “would welcome the opportunity for a constructive reset in engagement,” Chief Wilf Adam said in the statement. “American Eagle has built trust with Lake Babine Nation through consistent communication and collaborative consultation.”

Financial clout

The offer gives Pacific Booker investors exposure to a better-capitalized developer, American Eagle CEO Anthony Moreau said. American Eagle also points to its financial capacity, with $55 million in cash and backing from investors including Australian miner South32 (ASX, LSE, JSE: S32), Teck Resources (TSX: TECK.A, TECK.B) and Canadian investor Eric Sprott, as a differentiator in developing the projects.

South32 owns 19.9% of American Eagle, while Teck has a 12.9% stake.

The unsolicited bid follows nearly two years of unsuccessful attempts by American Eagle to negotiate a friendly transaction. With no engagement from Pacific Booker’s board, the company has taken its proposal directly to shareholders.

Porphyry district

The bid is open until July 29 and requires at least two-thirds shareholder support, along with regulatory approvals. Pacific Booker hasn’t yet issued a formal recommendation. A Pacific Booker spokesperson didn’t immediately respond to a request for comment Tuesday morning from The Northern Miner.

Morrison hosts 289.4 million measured and indicated tonnes grading 0.33% copper and 0.16 gram gold per tonne for contained metal of 764,084 tonnes of copper, 714,000 oz. gold, according to a 2014 presentation posted on Pacific Booker’s website. The property was first drilled by its original owner, Noranda Mines, in the 1970s.

Located 7 km away in central B.C.’s Babine copper-gold porphyry district, NAK is accessible via an all-season road. American Eagle is preparing to start a 50,000-metre drill program at NAK, with a maiden resource estimate and preliminary economic assessment targeted for next year.