Nevada King Gold's $11 Million Fundraising and Growth Plans
Nevada King Gold Corp. Announces $11 Million Offering
Nevada King Gold Corp. (TSXV: NKG), a notable presence in the gold mining sector, is ecstatic to share the news of a new non-brokered private placement financing of $11 million. This significant endeavor will involve the issuance of 44 million common shares priced at $0.25 each. The full allocation of this offering signifies robust interest and support from both current and new stakeholders.
Details of the Offering
Leading this initiative is Collin Kettell, the Chief Executive Officer of Nevada King, who plans to subscribe to a substantial portion of the offering with 22 million shares. To facilitate this, he will arrange a sale of 20 million shares from his personal portfolio. This strategic move is set to strengthen the company’s financial standing considerably.
Institutional Backing
As part of this offering, a prominent U.S.-based gold fund is anticipated to acquire approximately 5% of the company’s shares upon the closing of the offering. This will bring the collection of institutional shareholders to around 10% of the total shareholding, reflecting a growing confidence in Nevada King’s potential.
Management Commitment and Shareholder Alignment
Approximately 40% of Nevada King’s shares are owned by the management and insiders, highlighting a profound alignment of interests with shareholders. This ownership not only showcases their commitment but also emphasizes the belief in the company’s flagship Atlanta Gold Mine Project, which is set to advance significantly with the new capital.
Proceeds Utilization
The net proceeds from the offering will be allocated primarily to the development of the Atlanta Gold Mine Project and general working capital needs. The move aligns with the company’s strategic goals aimed at enhancing operational efficiencies and scaling production.
Details About the Atlanta Gold Mine Project
Nevada King’s Atlanta Gold Mine project spans an impressive 120km² in southeast Nevada, boasting a fully compliant NI 43-101 pit-constrained oxide resource. This project hosts significant numbers, with 460,000 ounces of gold within the measured and indicated categories and an additional inferred resource of 142,000 ounces, based on extensive historical drilling data.
Resource Assessment
The project has gone through rigorous assessments, showing a measured resource of over 4 million tonnes with an average grade of 1.51 grams per tonne. With ongoing development efforts, these figures are expected to improve further.
Looking Ahead
The company anticipates closing the offering within the next few weeks, supported by the approval from its board of directors. Additionally, insider participation is viewed as a related party transaction, which the company has navigated under the appropriate exemptions, ensuring compliance while promoting shareholder value.
About Nevada King Gold Corp.
Nevada King is committed to advancing its flagship Atlanta Gold Mine project, leveraging its experienced team and strategic initiatives to drive growth. As the mining landscape evolves, Nevada King is uniquely positioned to maximize opportunities and create value within the sector.
Frequently Asked Questions
What is the total amount being raised in this offering?
The total amount being raised is $11 million through the issuance of 44 million common shares.
Who is participating in the offering from the Company?
Collin Kettell, the CEO, is expected to subscribe for 22 million shares, alongside other insiders and institutional investors.
What is the purpose of the funds raised?
Funds raised will primarily support the Atlanta Gold Mine Project and be used for general working capital purposes.
When is the expected closing date for the offering?
The offering is expected to close within a few weeks from the announcement date.
What makes the Atlanta Gold Mine Project significant?
The Atlanta Gold Mine Project is significant due to its robust resources and the company's commitment to advancing the project with the new capital raised from this offering.
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