NuLegacy Gold Finalizes Cost Rationalization with Metalla Royalty

Author: Evelyn Baker Updated: 09-10-2024 06:00 PM

NuLegacy Gold Strengthens Position with Cost Rationalization

NuLegacy Gold Corporation, known for its commitment to discovering high-grade gold deposits, has announced a significant development in their financial strategy. The company has successfully completed an agreement that will alleviate some of their immediate financial obligations, namely the annual exploration expenditures associated with their Red Hill property.

Details of the Amendment Units

As part of this strategic move, NuLegacy issued 42,000,000 units, referred to as the "Amendment Units," to Metalla Royalty & Streaming Ltd. Each unit was issued at a deemed price of $0.01. In return, Metalla has waived the company’s obligation to incur annual exploration expenditures amounting to $150,000 for the years ahead related to their unpatented mining claims.

Structure of the Amendment Units

Each Amendment Unit consists of one common share and a warrant that allows the purchase of an additional common share at a set price of $0.05. This purchase option is valid for five years, and it incorporates a provision for potential re-pricing or acceleration tied to the approval of a proposed share consolidation at the upcoming annual general meeting.

Refocusing Exploration Efforts

With this financial maneuver, NuLegacy is now poised to refocus its resources on completing the larger private placement of 100,000,000 units, previously announced. Following the first closing which raised $452,000 from 45.2 million units, the company is looking to finalize the rest of the placement soon.

Future Outlook for NuLegacy Gold

The leadership at NuLegacy believes that this strategy will not only secure necessary funding but also streamline their exploration efforts on the Red Hill property. This property is situated in a highly prolific area known for significant gold mines, contributing to an optimistic outlook for potential discoveries.

About NuLegacy Gold Corporation

NuLegacy Gold is dedicated to exploring for high-grade Carlin-style gold deposits across its expansive 108 square kilometer Red Hill property. The site is strategically located near some of Nevada’s most productive gold mines, which boast a legacy of substantial gold production. By aligning its exploration activities closely with those productive sites, NuLegacy aims to leverage its proximity and the related geological advantages.

Proximity to Major Mining Operations

The Red Hill property is adjacent to three significant gold mines, which collectively host over 50 million ounces of gold. These major operations are recognized globally for their output, supporting approximately 3% of the world’s annual gold supply. The company continues to evaluate the geological context of its property, aiming to uncover potential gold resources that could be economically viable.

Management Insight and Contact

Albert J. Matter, CEO and Co-founding Director of NuLegacy Gold, emphasizes the significance of this agreement as a step towards alleviating financial pressure while positioning the company for future exploration activities. For further information, interested parties can reach out directly.

Contact Information

For inquiries, please contact Albert J. Matter at +1 (604) 639-3640 or via email at albert@nuggold.com.

Frequently Asked Questions

What is the main purpose of the agreement with Metalla Royalty?

The agreement helps eliminate the obligation of annual exploration expenditures of $150,000, allowing NuLegacy to refocus its financial resources on exploration activities.

What do the Amendment Units consist of?

Each Amendment Unit consists of one common share and a warrant to purchase another common share at $0.05 for a duration of five years.

How will the cost rationalization impact future exploration?

This agreement is expected to provide NuLegacy with increased flexibility and resources for its exploration efforts, particularly on the Red Hill property.

What is the significance of the Red Hill property?

The Red Hill property is strategically located near major gold mines in Nevada, enhancing the potential for discovering economically viable gold deposits.

Who can I contact for more information about NuLegacy Gold?

For more information, please reach out to Albert J. Matter, CEO, at +1 (604) 639-3640 or via email at albert@nuggold.com.

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