Centerra taking 9.9% stake in Nevada King Gold
Nevada King Gold Corp. [NKG-TSXV, NKGFF-OTCQB] has announced a $16 million strategic financing, including a $10 million investment by Centerra Gold Inc. [CG-TSX, CGAU-NYSE].
Nevada King shares rallied on the news, rising 33% or $0.055 to 22 cents in early trading Tuesday. The shares trade in a 52-week range of 32 cents and 12 cents.
The company said it intends to use the net proceeds from the financing to continue regional and reconnaissance exploration across the Atlantic Gold Mine Property in Nevada, especially high priority targets of Silver Park, Atlanta South, Atlanta North, and Western Rim.
Nevada King said it intends to complete a non-brokered private placement of common shares, which is fully subscribed for total proceeds of approximately $16 million. In connection with the financing, the company has entered into a subscription agreement with Centerra Gold that will see Centerra acquiring 9.9% of the issued and outstanding common shares of Nevada King at 21 cents per share, for anticipated proceeds of $10 million.
Both the Chairman of Nevada King, Collin Kettell, and the largest shareholder, Michael Parker, intend to participate in the financing to maintain their pro-rata ownership positions in the common shares, for anticipated gross proceeds of approximately $6.0 million.
Nevada King is focused on advancing and expanding its 100%-owned, past producing, 120 square kilometre Atlanta gold mine project, which is located along the Battle Mountain trend in southeastern Nevada. The project hosts a National Instrument 43-101-compliant pit-constrained oxide resource of 1.02 million ounces of gold in the measured and indicated category (27.7 million tonnes at 1.14 g/t), plus an inferred resource of 99,000 ounces of gold (3.6 million tonnes at 0.84 g/t) based on a gold price of US$2,200 ounce per tonne and a silver price of US$25 ounces.
Atlanta contains a past producing open pit gold mine, which produced 110,000 ounces of gold and 800,000 ounces of silver from 1.5 million tons between 1975 and 1985.
Nevada King is the third largest mineral claim holder in the State of Nevada, behind Nevada Gold Mines (Barrick Gold Corp. [ABX-TSX, B-NYSE] / Newmont Corp., [NEM-NYSE]), and Kinross Gold Corp. (K-TSX, KGC-NYSE).
“This strategic investment from Centerra culminates a lengthy period of due diligence and is a strong endorsement for both the quality and growth potential of the Atlanta Gold Mine Project, as well as for Nevada King’s exploration team,’’ said Nevada King CEO John Sclodnick. “With the bolstered treasury, the company is now in a position to advance our ambitious exploration program at Atlanta to truly define the district scale potential of one of the highest grade, open pit, oxide gold projects in Nevada, a top mining jurisdiction in the world.’’ The financing is expected to close in the second quarter of 2026.
Centerra is a Canadian gold mining company with a focus on acquiring and developing gold and copper properties in North America and Turkiye.