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Gold mining

NexGold Secures US$24 Million Financing with Appian Capital Advisory for Goldboro Gold Project

Strategic Insights

— 2 min read

NexGold Mining Corp. has closed its previously announced financing for a 2.9% net smelter returns royalty with Appian Capital Advisory Limited, securing a less dilutive source of financing for the Goldboro Gold Project. The transaction provides NexGold with cash consideration of US$24 million, allowing the company to advance the project through development activities and maintain its robust economics.

Key Takeaways:

  • The financing transaction provides NexGold with a 2.9% net smelter returns royalty on all minerals produced from the Goldboro Gold Project until 1,250,000 ounces of gold or gold equivalent is achieved, and thereafter only on gold, for the life of the project.
  • NexGold has the right to repurchase a portion of the royalty for US$29M within the third anniversary of the closing date and for US$30.5M thereafter until the fourth anniversary of the closing date.
  • The company has exercised its buyback on the 0.6% net smelter return royalty held by Nebari and has retired the existing US$12 million credit facility held by Nebari.
  • NexGold has secured a corporate awareness and marketing agreement with Quantum Ventures Inc, which has expired without being renewed by the company.
  • The Goldboro Gold Project is located in Nova Scotia, and the company has also announced that it will begin construction activities on the Project in the coming months.
  • NexGold has stated that it will provide updates on the project's development and progress in the future.

Statistics:

  • US$24 million in cash consideration received by NexGold from the financing transaction.
  • 2.9% net smelter returns royalty secured by NexGold on the Goldboro Gold Project.
  • 1,250,000 ounces of gold or gold equivalent production required before the royalty reduces to rock-only on gold.
  • US$29M in buyback price of the royalty within the third anniversary of the closing date.
  • US$30.5M in buyback price of the royalty thereafter until the fourth anniversary of the closing date.

Sources:

  • (GlobeNewswire) - NexGold Mining Corp. (TSXV: NEXG; OTCQX: NXGCF) (NexGold or the Company) is pleased to announce that it has closed its previously announced financing for a 2.9% net smelter returns royalty (the Royalty) with Appian Capital Advisory Limited (Appian) in relation to the Companys 100% owned Goldboro Gold Project (the Project).
  • About Appian Capital Advisory Ltd is the investment advisor to long-term value-focused private capital funds that invest in companies in metals, mining, and adjacent industries.
  • Contact: Kevin Bullock President & CEO (647) 388-1842 kbullock@nexgold.comOrin Baranowsky Chief Financial Officer (647) 697-2625 obaranowsky@nexgold.com

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