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NevGold Announces Convertible Securities Financing of up to C$8 Million
Vancouver, British Columbia, Aug. 26, 2024 (GLOBE NEWSWIRE) -- NevGold Corp. (“NevGold” or the “Company”) (TSXV:NAU) (OTCQX:NAUFF) (Frankfurt:5E50) is pleased t
About this update from Nevgold Corp
[{"type":"text","content":"Vancouver, British Columbia, Aug. 26, 2024 (GLOBE NEWSWIRE) -- NevGold Corp. (“NevGold” or the “Company”) (TSXV:NAU) (OTCQX:NAUFF) (Frankfurt:5E50) is pleased to announce a financing of unsecured convertible securities (“the Financing”) with Mercer Street Global Opportunity Fund II, LP, managed by C/M Global GP, LLC (“the Investor” or “Mercer”). The Financing is structured in two tranches with the funded amounts being C$3.5 million for the first tranche and a potential of up to C$4.5 million in a second tranche pursuant to the terms of a convertible security funding agreement dated August 23, 2024 between the Company and the Investor. NevGold CEO, Brandon Bonifacio, comments: “We are pleased to announce this financing package and further capital support from Mercer, who have been a strong supportive shareholder of the Company over recent years. The financing will allow us to continue to advance our high-quality portfolio of gold and copper assets in the Western USA, with the proceeds focused on drilling our Nutmeg Mountain and Limousine Butte oxide, heap-leach gold projects, along with advancing our Zeus copper project through the first phase of systematic exploration. Although the financing markets remain challenging with commodity prices reaching all-time highs, this funding package provides a flexible structure which will allow us to rapidly advance our portfolio leading to significant news flow and developments over the coming year.” Use of Proceeds The Company intends to use the aggregate net proceeds raised from the Financing for general working capital purposes and to strategically advance its Nutmeg Mountain (Idaho) and Limousine Butte (Nevada) oxide, heap-leach gold projects, and its Zeus Copper Project (Idaho). Closing of each tranche of the Financing is subject to customary closing conditions, including the approval of the TSX Venture Exchange (the “Exchange”). Key Terms of the Financing Tranche 1 (“First Convertible Security”) Term: 24 months Funded Amount: $3,500,000 Use of Proceeds: General working capital and to advance mineral properties Original Issue Discount (“OID”) $650,000 First Investment Conversion Terms: Principal amount of $3,500,000 will be convertible at the option of the Investor for a 24-month period into up to 10,000,000 common shares of the Company (each, a “Share”) at a price per Share equal ...