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NuLegacy Gold Closes Initial Tranche of CA$4.5 Million Financing
RENO, NEVADA--(Oct. 17, 2016) - NuLegacy Gold Corporation (TSX VENTURE:NUG)(OTCQX:NULGF) is pleased to report it has closed an initial tranche of 10,032,590 uni
About this update from Nulegacy Gold Corporation
[{"type":"text","content":"RENO, NEVADA--(Oct. 17, 2016) - NuLegacy Gold Corporation (TSX VENTURE:NUG)(OTCQX:NULGF) is pleased to report it has closed an initial tranche of 10,032,590 units for gross proceeds of C$4,514,666 of the 20,000,000-unit non-brokered C$0.45 per unit financing announced October 4, 2016. The long-established Tocqueville Gold Fund participated as to 9,020,590 million units to increase its total shareholdings to 28,556,090 shares and attain its objective of 9.9% of the common shares of the Company. Each Unit consists of one common share and one full share purchase warrant, with each warrant entitling the holder to purchase one additional common share for a period, subject to acceleration, of 18 months at an exercise price of $0.65. In the mean while your Chairman, Albert Matter, has been in Elko Nevada, and has negotiated and contracted with Boart Longyear, Nevada's premier drilling company, to provide a very powerful core rig and best crew to drill a 2,500+ foot core hole as a step out from hole AV-2, the Avocado discovery hole. Boart has assured us that despite the late start they will complete the hole before the onset of unfavorable winter conditions. The stratigraphic information from this hole, together with the data from the initial Avocado holes and the recent geophysical surveys will provide the guidance for the selection of the next 4 to 6 reverse circulation holes to be drilled into the Avocado deposit in the spring of 2017. The net proceeds of this financing will be used to fund the Company's expanded gold exploration programs in Nevada (Red Hills/Iceberg) and for general corporate purposes. Finder's fees of 6% cash and 6% finder's warrants were or will be paid and issued on approximately 200,000 units to various finders. All securities issued and issuable in connection with this initial tranche are subject to a four-month hold period expiring February 18, 2017. The financing remains subject to the potential exercise of equity participation rights by certain existing shareholders as previously disclosed on October 4, 2016. About NuLegacy: The Iceberg gold deposit has an established exploration target of 90-110 million tonnes of 0.9 to 1.1 grams of gold per tonnei. It is located in the Cortez gold trend of Nevada, adjacentii to three of Barrick's multi-million ounces Carlin-type gold deposits that are amongst its lowest co...