NevGold Secures C$3.5 Million in Convertible Securities Financing
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NevGold Secures C$3.5 Million in First Tranche Financing
Vancouver, British Columbia — NevGold Corp. (“NevGold”) (TSXV: NAU) (OTCQX: NAUFF) (Frankfurt: 5E50) is excited to unveil the successful closing of the first tranche of an unsecured convertible securities financing, amounting to C$3.5 million. This funding comes from Mercer Street Global Opportunity Fund II, LP, managed by C/M Global GP, LLC. The announcement reflects an important step in NevGold's strategy to enhance its project portfolio.
Funding Structure and Future Prospects
With a total financing arrangement structured in two tranches, the Company has secured this initial amount, while potentially accessing an additional C$4.5 million in the second tranche, as outlined in the funding agreement dated August 23, 2024. This carefully designed financing is set to cater to NevGold's ambitious development plans.
CEO Insights on Financing
Brandon Bonifacio, CEO of NevGold, expressed enthusiasm about the financing's closure, stating, “With these funds secured, we are poised to accelerate drilling activities at our Nutmeg Mountain and Limousine Butte projects, as well as advance operations at our highly promising Zeus copper project in Idaho.” He emphasized the company's commitment to progress as market dynamics evolve.
Details of the Financial Instruments
The first tranche includes the issuance of a convertible security worth C$3.5 million, which is convertible into a maximum of 10 million common shares at a conversion price of not less than C$0.35 per share until August 30, 2026. Complementing this, 5 million common share purchase warrants have been issued, with each warrant allowing the holder to acquire one share at a price of C$0.525 until the same date.
Conditions and Usage of Proceeds
The issued securities are subject to a holding period expiring on December 31, 2024, in line with Canadian securities laws. The proceeds from the financing will primarily be allocated towards general working capital, alongside advancing the Nutmeg Mountain and Limousine Butte projects, which feature promising gold deposits, as well as the Zeus Copper Project.
Future Steps and Strategic Developments
The successful closing of this tranche is contingent on standard closing conditions, including exchange approval. As the second tranche is confirmed, more details regarding pricing and additional securities will be provided.
Company Overview
NevGold Corp. is an exploration and development firm dedicated to identifying large-scale mineral systems in premier mining areas within Nevada and Idaho. The Company holds a 100% interest in several gold and copper projects, including Limousine Butte and Cedar Wash in Nevada, as well as Nutmeg Mountain and Zeus in Idaho.
Frequently Asked Questions
What is the total amount raised by NevGold so far?
NevGold has successfully raised C$3.5 million through the first tranche of financing.
What are the intended uses of the financing proceeds?
The proceeds will be used for general working capital and to advance specific projects, including Nutmeg Mountain and Limousine Butte.
Who is the investor in this financing?
The financing was structured with Mercer Street Global Opportunity Fund II, LP as the investor.
How many shares can the convertible security be converted into?
The convertible security can be converted into up to 10 million common shares of NevGold.
When is the deadline for the first convertible security's conversion?
Conversion is permitted until August 30, 2026.
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