Business
NuLegacy Gold Arranges C$3.0 Million C$0.20/Unit Financing
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES RENO, Nev., July 05, 2018 (GLOBE NEWSWIRE) -- NuLegacy Gold C
About this update from Nulegacy Gold Corporation
[{"type":"text","content":" NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES RENO, Nev., July 05, 2018 (GLOBE NEWSWIRE) -- NuLegacy Gold Corporation (TSX-V:NUG) (OTCQX:NULGF) is undertaking a non-brokered private placement financing up to 15 million units (“Units”) at a price of $0.20 per Unit to raise C$3.0 million (the “Financing”). “We are delighted to have our major shareholder, OceanaGold, support NuLegacy’s exploration objectives in this funding,” comments Albert Matter, NuLegacy’s Chairman. “We have sufficient funds to complete our 2018 exploration program; we are increasing our treasury to handle an anticipated expansion of the Fall 2018/Spring 2019 drilling programs. Upon closing, NuLegacy will have ~C$9.0 million in its treasury.” OceanaGold Corporation intends to exercise its equity participation right in NuLegacy financings (see news release dated April 13, 2016) by purchasing such number of Units as required to maintain its current undiluted equity ownership interest in NuLegacy Gold at 16.2% (2.4 million Units on full subscription). In addition, certain directors and officers of NuLegacy (collectively “Insiders”) intend to participate in the Financing for a substantial number of Units. Each Unit of the Financing consists of one common share and one share purchase warrant, with each warrant entitling the holder to purchase one additional common share for a period, subject to acceleration, of 24 months at an exercise price of C$0.30 per share. The financing is expected to close on or about July 16, 2018. The net proceeds from the Financing will be used to fund the ongoing exploration of NuLegacy’s Red Hill property, and general corporate and working capital expenses. Finder’s fees in cash and/or finder’s warrants will be payable on a portion of the Financing (excluding OceanaGold and Insiders) in accordance with the policies of the TSX Venture Exchange (the “Exchange”). All securities to be issued in connection with the Financing will be subject to a four month hold period. The portions of the Financing with OceanaGold and Insiders constitute “related party transactions” for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61-101”), and the Company has relied upon exemptions from the requirement to obtain a formal valuati...