NxGold acquiring uranium prospects; changes name
NxGold Ltd. [NXN-TSXV; LBHRF-OTC] has raised $3.2 million from a non-brokered private placement financing and said it is changing its name to International Consolidated Uranium Inc. in a bid to become a consolidator in the global uranium space. The company will now trade under the symbol CUR on the TSX Venture Exchange.
The move comes after the Vancouver-based exploration company signed option agreements with Mega Uranium Ltd. [MGA-TSX] to acquire a 100% interest in the Ben Lomond and Georgetown uranium projects in Australia, and with IsoEnergy Ltd. [ISO-TSXV] to acquire a 100% interest in the Mountain Lake uranium project in Nunavut.
In addition, the company owns 80% of the Mt. Roe gold project located in the Pilbara region of Western Australia. It has also entered into an earn-in agreement with Meliadine Gold Ltd. to earn up to 70% of the Kuulu Project (formerly known as the Peter Lake Gold Project) in Nunavut.
Under the terms of the offering, the company said it has issued 6.4 million units at 50 cents per unit. Each unit consists of one common share and one-half of one whole warrant good to buy one common share for three years after the closing date at $0.75 per share.
On Friday, the shares rose 5.2% or $0.03 to 61 cents in light trading. The shares are trading in a 52-week range of 74 cents and 10 cents.
“It’s with great pleasure that we welcome dedicated uranium funds Segra Capital and Sachem Cove, as well as several other strategic and institutional investors from around the globe to the company,” said International Consolidated President and CEO Philip Williams.
“The support we have seen from key players in the uranium space is a tremendous endorsement of our team and our model,” he said. “The company is now well-positioned, with over $5.5 million in cash and investments, to execute on our plan to become a leading consolidator of uranium assets worldwide.”
Prior to these announcements, NxGold Ltd. was an exploration and development company with a focus on pursuing high grade gold opportunities. The company was founded by the team behind NexGen Energy Ltd. [NXE-TSX, NYSE] which is developing one of the world’s largest uranium deposits on its Rook 1 property in Saskatchewan.
Before joining the NxGold, Williams was a co-founder and CEO of Uranium Royalty Corp. [URC-TSXV] where he oversaw multiple royalty acquisitions and the strategic investment in Yellow Cake Plc. [YCA-LSE]. He was also Vice-President, Business Development at Pinetree Capital Ltd., a natural resource-focused investment firm.