Nevgold raises $3.5 million for U.S. exploration projects
Nevgold Corp. [NAU-TSXV, NAUFF-OTC QX, 5E50-Frankfurt] said it has raised $3.5 million after closing the first tranche of a convertible securities financing.
Back on August 26, 2024, Nevgold announced a financing of unsecured convertible securities with Mercer Street Global Opportunity Fund 11, LP, managed by C/M Global GP, LLC. Nevgold said the financing is structured in two tranches with the funded amounts being $3.5 million for the first tranche and a potential of up to $4.5 million in the second tranche, pursuant to the terms of a convertible security funding agreement dated August 23, 2024, between the company and the investor.
Nevgold shares were unchanged Wednesday at 29 cents. The shares trade in a 52-week range of 50 cents and 23 cents.
The company intends to use the proceeds for general working capital purposes and to strategically advance its Nutmeg Mountain (Idaho) and Limousine Butte (Nevada) oxide, heap-leach gold projects and is Zeus Copper project (Idaho).
The first investment conversion terms are as follows: The principal amount of $3.5 million will be convertible at the option of the investor for a 24-month period into up to 10 million Nevgold common shares at a price per share equal to the greater of (i) 90% of the volume-weighted average trading value per share for the five consecutive trading days immediately prior to the application date that the investor provides notice of conversion and (ii) $0.35 cents.
The second tranche of the financing remains subject to confirmation by the company and the investor, with pricing and further details regarding the second convertible security to be disclosed in a subsequent press release if the parties decide to proceed with the second tranche.
Nevgold was in the news recently when the company said it had identified high grade copper, gold and silver mineralization at surface at the newly staked Zeus Copper project, which is located in the emerging Hercules copper district of southwestern Idaho.
“Positive sampling results highlight the significant copper porphyry potential at Zeus, the company said in a press release. On Friday, Nevgold shares eased 1.12% or $0.005 to 42 cents and trade in a 52-week range of 50 cents and 24 cents.
Nevgold said the newly staked Zeus Copper project covers 20 square kilometres (2,000 hectares) and is located 20 kilometers southwest of a major new copper porphyry discovery reported by Hercules Metals Corp. [BIG-TSXV, BADEF-OTCQB, 8Q7-FWB] the Hercules discovery, which it notes has attracted the interest of Barrick Gold Corp. [ABX-TSX, GOLD-NYSE], which currently holds a 15.09% stake in Hercules Metals.
The Zeus Copper Project covers some of the most prospective ground in the Hercules Copper Trend, Nevgold said in a press release. This area of Idaho, named the “Mineral District,” was a significant historical copper producer that supported a smelting operation and hosts numerous historical mine workings, Nevgold said.
Nevgold staked the Zeus project just months after Hercules Metals confirmed a major new copper porphyry discovery at its Hercules property.