NexGold closes $112.5 million bought deal financing
NexGold Mining Corp. [NEXG-TSXV] has closed a $112.5 million bought deal private placement of units and flow through shares with proceeds earmarked for the company’s Goldboro open pit gold project in Nova Scotia.
The company issued 69.4 million units priced at $1.44 per unit for gross proceeds of $100 million and 7.9 million flow-through shares priced at $1.58 per FT share, raising aggregate proceeds of $12.5 million. Each unit consists of one common share and one common share purchase warrant, each of which can be exercised to acquire one common share until October 31, 2027 at an exercise price of $1.92. The company retains the option to accelerate the expiry date if the closing price of the shares exceeds the exercise price for 20 or more trading days.
On Friday, NexGold shares were unchanged at $1.41. The shares trade in a 52-week range of $1.82 and 61 cents.
NexGold recently released additional drill results from a 26,854-metre diamond drill program.
The drill program was designed to infill specific areas of the open pit mineral resource identified to improve geological and grade continuity and potentially upgrade certain areas of inferred and indicated mineral resources.
The assay results were from an additional 36 infill diamond drill holes, totalling 5,874 metres, where drill crews were targeting the proposed east pit. Highlight results include 77.30 g/t gold over 1.25 metres (from 96.75 to 98 metres), including 190.50 g/t gold over 0.50 metres in drill hole BR-25-516.
At that point, the company had released 86 holes (approximately 61%) from the infill program.
“We are very pleased to continue to see high-grade gold assays from the East Goldbrook domain and withing the proposed east pit,’’ said NexGold CEO Kevin Bullock. “The additional infill, twinned drilling and numerous gold intercepts within the east pit will help us further refine the Goldboro Mineral Resource model going forward,’’ he said. “We are also pleased to confirm that we have selected Micon International Co. Ltd. to complete the mineral resource update, which is now underway and is a critical first step to updating the existing Goldboro feasibility study.’’
NexGold secured the Goldboro property via its recent acquisition of Signal Gold Inc. The aim was to create a top near-term gold developer, advancing NexGold’s Goliath Gold Complex in northern Ontario and Signal’s Goldboro Gold Project in the historic Goldboro Gold District in Nova Scotia.
With Environmental Approvals in place, the aim is to attain production of over 200,000 ounces annually.
Signal was advancing the Goldboro project subject to a positive feasibility study which envisages an 11-year open pit mine life with average gold production of 100,000 ounces annually and an average diluted grade of 2.26 g/ gold.
A 2021 Goldboro feasibility study is based on maiden open pit probable reserves of 1.15 million ounces of gold and a mill capacity of 4,000 tonnes per day. The study pegged the initial capital cost at $271 million and life of mine sustaining capital at $63.1 million.
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