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NevGold Closes Option To Acquire The Nutmeg Mountain Gold Project And $1M Strategic Investment By GoldMining
Vancouver, British Columbia, July 05, 2022 (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, July 05, 2022 (GLOBE NEWSWIRE) -- NevGold Corp. (“NevGold” or the “Company”) (TSXV:NAU) (OTCQX:NAUFF) (Frankfurt:5E50) is pleased to announce closing of the option agreement (“the Option”) to acquire the Nutmeg Mountain Gold Project (“the Project” or “Nutmeg Mountain”), and C$1 million strategic investment by GoldMining Inc. (“GoldMining”, TSX:GOLD, NYSE:GLDG). NevGold CEO, Brandon Bonifacio, comments: “NevGold is very pleased to close the option agreement on Nutmeg Mountain and the C$1M first tranche of financing with GoldMining. With current treasury and the C$1M financing we are funded to continue to advance our projects. We also have a further C$1.25M lead order from GoldMining in a future financing which gives us flexibility over the coming months. We are expecting more assays out of Nevada imminently, so it is shaping up to be an extremely busy 2nd half of 2022. We welcome GoldMining as a new strategic partner and investor, and we look forward to the next chapter of NevGold with a larger scale platform and significant valuation re-rate potential.” Terms of the Transaction Under an option agreement among NevGold, GoldMining, and their respective U.S. subsidiaries: In consideration for the grant of the Option, NevGold issued 4,444,444 common shares to GoldMining at a price of $0.675 per share, representing C$3 million of value based on the 30-day volume-weighted average price of NevGold shares. GoldMining becomes a large, cornerstone, strategic investor of NevGold with a 10.5% interest; Concurrently with the above issuance, GoldMining made an initial Investment of C$1 million, subscribing for 1,481,481 NevGold shares at a price of $0.675 per share, and commits to a further lead order in an amount up to C$1.25 million in a future financing by NevGold; In order to exercise the option, NevGold will pay the following amounts, or at its discretion, issue shares to GoldMining with an equivalent value, on the following schedule: January 1, 2023: C$1.5 million July 1, 2023: C$1.5 million January 1, 2024: C$3.0 million In order to exercise the Option, NevGold will also be required to make qualifying expenditures on the Project totalling C$2.25 million: $1.5 million on or before June 1, 2023 a further $0.75 million on or before December 31, 2023 On completion of the total C$9.0 million in equity issu...