NexGold closes $10 million bought deal financing
NexGold Mining Corp. [NEXG-TSXV] said it has raised $10 million from a previously announced bought deal private placement financing.
NexGold recently completed the acquisition of Signal Gold Inc., a move that created a top near-term gold developer with assets that include NexGold’s Goliath Gold Complex in northern Ontario and Signal’s Goldboro Gold Project in Nova Scotia. NexGold also owns several other projects throughout Canada, including the Weebigee-Sandy Lake Gold Project joint venture in northwestern Ontario, and grassroots gold property Gold Rock near Dryden, Ont. In addition, the company holds a 100% interest in the high-grade Niblack copper-gold-zinc-silver VMS project, located adjacent to tidewater in southeast Alaska.
With Environmental Approvals in place, the aim is to attain production of over 200,000 ounces annually.
Under the terms of the offering, NexGold issued 13.9 million units priced at 72 cents per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant can be used to acquire one common share of the company for 36 months from closing at an exercise price of $1.05.
Net proceeds will be used for the continued advancement of the company’s mineral properties and for general corporate purposes.
NexGold shares rose 0.8% or $0.005 to 63.5 cents on Wednesday. The share trade in a 52-week range of $1.00 and 62 cents.
Prior to being acquired by NexGold, 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. The project is located on tidewater, approximately 185 kilometres northeast of Halifax.
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.
The study envisages the creation of 345 direct full-time jobs during construction and 215 full-time jobs will the mine is in operation, generating $226 million in federal and provincial tax payments.
NexGold said significant permitting progress has been achieved at Goldboro, including the granting of a 20-year mineral lease from the Government of Nova Scotia.
Looking ahead to 2025. NexGold is focused on creating value for shareholders, through the advancement of the Goldboro and Goliath projects, which will include comprehensive drill programs, continued advancement of permitting activities and feasibility studies.
Plans for this year include a comprehensive, multi-phase drill campaign, with up to 25,000 metres of diamond drilling at Golboro, where an updated feasibility study is scheduled to be completed following a major infill drill program. The company aims to complete a feasibility study at Goliath in the first half of this year.