NexGold Closes Major C$112.5M Financing Round for Growth
NexGold Completes Successful Private Placement Financing
Toronto-based NexGold Mining Corp. (TSXV: NEXG; OTCQX: NXGCF) has announced the successful closing of its major C$112.5 million private placement. This financing venture saw the company offer 69,445,000 units at C$1.44 each, generating gross proceeds totaling C$100,000,800. Moreover, an additional 7,944,000 flow-through shares were sold at C$1.58 per share, adding another C$12,551,520 to the total amount raised.
Details of the Offering
Each unit issued comprises one common share and a common share purchase warrant, known as a Warrant. The Warrants allow investors to acquire an additional common share before their expiry on October 31, 2027, at an exercise price of C$1.92. The offering was spearheaded by National Bank Financial Inc., in collaboration with BMO Capital Markets and Red Cloud Securities Inc.
Use of Proceeds from the Offering
The net proceeds from the sales will primarily be allocated to advancing the Goldboro Gold Project as well as bolstering general corporate activities and working capital. NexGold plans to utilize the proceeds from the flow-through shares capital to incur exploration expenses eligible for Canadian tax credits by December 31, 2026.
Insider Participation and Closing Insights
It is also noteworthy that insiders participated in this latest offering, acquiring a total of 287,500 units with gross proceeds of $414,000, along with 178,000 flow-through shares representing $281,240. Such transactions fall under related party transactions per applicable regulations, and necessary disclosures were made accordingly.
Compliance and Hold Period Information
All securities issued are subject to a hold period outlined in Canadian securities laws. This period extends for four months and one day from the closing date, during which the resale of the shares is restricted. NexGold is committed to adhering to all regulatory requirements associated with the offering.
Company Overview
NexGold is focused on gold exploration and development, boasting various assets across Canada and Alaska. The company is particularly committed to responsible mining practices and engaging with local communities to foster sustainable economic opportunities and social benefits. Their Goldboro Gold Project located in Nova Scotia and the Goliath Gold Complex in Ontario are essential facets of their growing portfolio.
Closing Remarks
The financial injection from this offering positions NexGold for considerable growth and exploration in the upcoming years. A commitment to transparency and community engagement will continue to shape NexGold's initiatives as it advances its projects in the dynamic landscape of the mining industry.
Frequently Asked Questions
What is NexGold Mining Corp. focused on?
NexGold concentrates on gold exploration and development initiatives across Canada and Alaska.
How much capital did NexGold raise in its latest offering?
The company successfully raised C$112.5 million through a private placement financing.
What are the key projects of NexGold?
The company has significant projects, including the Goldboro Gold Project in Nova Scotia and the Goliath Gold Complex in Ontario.
What is the purpose of the funds raised?
Proceeds will support the development of the Goldboro Gold Project and provide general corporate and working capital.
How long are the securities subject to holding?
Issued securities will be under a hold period of four months plus one day, limiting their resale during this timeframe.
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