Nevgold raises $42 million from upsized private placement
Nevgold Inc. [NAU-TSXV, NAUFF-OTC QX, 5E50-Frankfurt] has raised $42 million from an upsized brokered private placement financing and will use the proceeds to advance its Limo-Butte Antimony-Gold Project in Nevada and the Nutmeg Mountain gold project in Idaho. The amount raised is up from an earlier $25 million target.
The offering consisted of 22.2 million common shares priced at $1.90 each. On Tuesday, Nevgold shares rose 0.97% or $0.02 to $2.07. The shares currently trade in a 52-week range of $2.30 and 24 cents.
“The successful closing of the upsized, no-warrant $42 million financing is a strong endorsement of the growing Nevgold platform and we are excited to continue to execute on our clearly defined, well-financed roadmap over the next 12 to 18 months,’’ said Nevgold CEO Brandon Bonifacio. “The capital raised will allow us to expedite the advancement of the near-term antimony production opportunity from the Limo Butte Project in Nevada – a project that we believe is emerging as one of the most important critical minerals assets in the United States,’’ he said. “In parallel, we will also continue to unlock value across the broader project area with a focused strategy around oxide gold-antimony.”
Limousine Butte is a brownfield site, hosting a previously mined open-pit, heap leach gold operation from the late 1980s. It is located in White Pine County in eastern Nevada, northeast of Ely.
The company said recent drilling results continue to indicate that the Limousine Butte is one of the highest-grade antimony projects in North America. It said that view is exemplified by Hole LB25-024, which intercepted a thick, consistent zone of 4.91 g/t gold equivalent (AuEq) over 27.4 metres (1.09% Sb and 0.67 g/t gold).
The company said an initial antimony-gold mineral resource estimate (MRE) is on schedule for the second half of 2026. It said the MRE is a key step in the development of Limo Butte with the objective of achieving near-term antimony production from the historical gold leach pads at the project.
“At Limo Butte we have defined a large, near-surface footprint of oxide antimony mineralization which is amenable to leaching, and we have the opportunity to produce antimony metal at the project site. Being able to produce antimony metal at the project site removes reliance on downstream refining at a concentrator,” the company has said.
Antimony is considered a “Critical Mineral’’ by the United States based on the U.S. Geological Survey’s 2022 list and due to its importance in natural security. Antimony is utilized in a number of military applications, including the manufacturing of armor piercing bullets, night vision goggles, infrared sensors, precision optics, laser sighting, explosive formulations and hardened lead for bullets. Globally, approximately 90% of the world’s current antimony supply is produced by China, Russia and Tajikistan.