Nevgold Inc. [NAU-TSXV, NAUFF-OTC Q X, 5E50-Frankfurt], a company with projects in Nevada, Idaho, and British Columbia, said Monday it has raised $4.1 million from a brokered private placement. That’s up from the previous $3.0 million target.
GoldMining Inc. [GOLD-TSX, GLDG-NYSE American], the company’s largest shareholder, subscribed for $1.25 million worth of shares and now owns 13.1% of Nevgold following the closing of the offering. The company issued 9.7 million units under the offering.
Each unit, priced at 42 cents per unit, consists of one common share and one half of one common share purchase warrant. Each warrant entitles the holder to buy one common share at an exercise price of 60 cents until, December 5, 2024.
On Monday, Nevgold shares eased 2.7% or $0.01 to 36 cents and currently trade in a 52-week range of 85 cents and 33 cents.
Nevgold is an exploration and development company targeting large-scale mineral systems in the proven districts of Nevada and British Columbia. It owns a 100% interest in the Limousine Butte and Cedar Wash projects in Nevada, the Ptarmigan silver polymetallic project in southeastern B.C., and Nutmeg Mountain project in Idaho.
Proceeds of the offering are earmarked for advancing the Limousine Butte and Nutmeg Mountain gold projects. Nutmeg Mountain is located in Idaho.
“We are thrilled to complete this timely financing prior to year-end which sets the company up for a very active start in 2023 at both Nutmeg Mountain in Idaho and Limousine Butte in Nevada,’’ said NevGold CEO Brandon Bonifacio.
“We are thankful for our existing shareholders, including the lead order of $1.25 million from GoldMining Inc., and we have also added some significant new names to our shareholder registry through this financing,” he said.
In a November 10, 2022 press release, NevGold released more assay results from the drilling at the Resurrection Ridge target area at its Limousine Butte Project, which is located in the southern part of Nevada’s infamous Carlin Trend.
The company said Hole RR22-001 intersected 0.53 g/t oxide gold over 74.7 metres, including 0.81 g/t oxide gold over 19.9 metres from the top of the mineralized zone. The current mineralized area at Resurrection Ridge now extends over 700 metres along strike and over 350 metres laterally. It said there remains another 1.0 kilometre of untested strike length to the northeast.
Resurrection Ridge and Cadillac Valley are two drill target areas that will form the basis of advancing Limousine Butte to a near-term resource estimate, the company has said.
As announced in June, 2022, Nevgold acquired an option on the Nutmeg Mountain gold project from GoldMining Inc. Nutmeg is a low-sulphidation epithermal gold-silver deposit. It has been the target of over 70,000 metres of historical drilling.
The project is estimated to contain an indicated resource of 910,000 ounces of gold, plus 160,000 ounces in the inferred category.