NevGold Secures Financing of Unsecured Convertible Securities
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NevGold Secures Financing of Unsecured Convertible Securities
NevGold Corp. (TSXV: NAU, OTCQX: NAUFF, Frankfurt: 5E50) has announced a strategic financing initiative involving unsecured convertible securities. This financing is done in partnership with Mercer Street Global Opportunity Fund II, LP, which showcases the company's ability to attract significant investment to further its projects.
Overview of the Financing
The financing consists of two tranches, with an initial funding amount of C$3.5 million for the first tranche and a potential additional C$4.5 million for the second tranche. This structured approach allows NevGold to gauge investor interest and funding effectiveness dynamically.
CEO Insights on the Financing
Brandon Bonifacio, CEO of NevGold, expressed enthusiasm regarding the financing package and the continued support from Mercer. Bonifacio stated that this funding will enable the company to enhance its high-quality portfolio in gold and copper assets throughout the Western USA. The proceeds are specifically earmarked for advancing projects such as Nutmeg Mountain and Limousine Butte, which focus on oxide, heap-leach gold extraction, and for advancing the Zeus copper project through initial stages of systematic exploration.
Use of Proceeds
Net proceeds from the financing will be allocated for general working capital expenses and for strategically pushing forward the Nutmeg Mountain and Limousine Butte projects, alongside the Zeus Copper Project. The funds are expected to play a critical role in the continuous development and exploration efforts of the company.
Financing Terms
The closing of the financing tranches is subject to customary closing conditions, including the approval from the TSX Venture Exchange.
Key Features of the Financing
The financing's key features include defined terms for both tranches:
Tranche 1 Details
The first tranche, referred to as the "First Convertible Security," carries a term of 24 months with a funded amount of $3,500,000. The funds will primarily be used for general working capital and advancing the company's mineral properties. Notably, it has an Original Issue Discount (OID) of $650,000, with conversion terms that provide flexibility to the investor over a period extending 24 months.
Potential for Tranche 2
The second tranche, labeled "Second Convertible Security," also has a 24-month term and potential funding up to $4,500,000. As well as having provisions for OID, it remains contingent on confirmation and will include necessary pricing details, slated for a later announcement.
Additional Financing Provisions
Critical additional terms include the right for the company to prepay the securities during the term. The OID for both convertibles accrues monthly, offering additional financial flexibility. Furthermore, common share purchase warrants equivalent to 50% of the funded amounts will be issued concurrently with both security tranches, supporting attractiveness for investors.
Regulatory Compliance
All securities issued under the financing will adhere to regulatory compliance requirements, including a hold period in accordance with Canadian securities laws. This critical component ensures that all parties involved are sheltered from regulatory uncertainties.
About NevGold
NevGold is poised to be a key player in the exploration and development of significant mineral systems in recognized districts, holding full interests in notable projects in Nevada and Idaho. Its commitment to advancing these projects is underscored by the successful acquisition of funding, which will drive long-term growth and investor confidence.
Frequently Asked Questions
1. What is the total amount NevGold is aiming to raise through this financing?
NevGold aims to raise up to C$8 million through the financing of unsecured convertible securities.
2. Who is managing the financing for NevGold?
The financing is managed by Mercer Street Global Opportunity Fund II, LP.
3. What are the primary projects supported by this financing?
The financing supports the advancement of the Nutmeg Mountain and Limousine Butte gold projects, as well as the Zeus copper project.
4. What are the terms associated with the convertible securities?
The financing is structured in two tranches with timed conversion options and includes provisions for common share purchase warrants.
5. How crucial is regulatory approval for the financing?
The closing of each financing tranche is subject to regulatory approval from the TSX Venture Exchange, which is a standard practice for such financing activities.
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