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Nevgold Executes Option To Acquire The Nutmeg Mountain Gold Project And Announces Strategic Investment By Goldmining Inc.

Nevgold Executes Option To Acquire The Nutmeg Mountain Gold Project And Announces Strategic Investment By Goldmining Inc.

06/14/22, 8:00 AM
Location
https://purecatamphetamine.github.io/country-flag-icons/3x2/US.svgvancouver
NevGold Corp. (“NevGold” or the “Company”) (TSXV:NAU) (OTCQX:NAUFF) (Frankfurt:5E50) is pleased to announce execution of an option agreement (“the Option”) to acquire the advanced exploration stage Nutmeg Mountain Gold Project (“the Project” or “Nutmeg Mountain”, also known as Almaden) in Idaho from GoldMining Inc. (“GoldMining”) which hosts a historical resource completed in 2020 of 910,000 Indicated ounces of gold, and 160,000 Inferred ounces of gold. GoldMining will also make a strategic investment (“the Investment”) in NevGold of C$1 million on closing of the option agreement, and further has committed to a lead order of C$1.25 million in a future financing.

Company Info

Company
Nev Gold
Location
vancouver, washington, united states
Additional Info
To view image please click here Project Development PlanPost-closing, NevGold has comprehensive plans for advancing the Project. GoldMining will become a large, cornerstone, strategic investor of NevGold with an approximate 10.6% interest;Concurrently with the above issuance, GoldMining will make the initial Investment of $1 million, subscribing for 1,481,481 NevGold shares at a price of $0.675 per share, and commits to a further lead order in an amount up to C$1.25 million in a future financing by NevGold completed by November 30, 2022;In order to exercise the option, NevGold will pay the following amounts, or at its discretion, issue shares to GoldMining with an equivalent value, on the following schedule: January 1, 2023: C$1.5 millionJuly 1, 2023: C$1.5 millionJanuary 1, 2024: C$3.0 million In order to exercise the Option, NevGold will also be required to make qualifying expenditures on the Project totalling C$2.25 million: $1.5 million on or before June 1, 2023a further $0.75 million on or before December 31, 2023 On completion of the total C$9.0 million in equity issuances and/or payments to GoldMining and total C$2.25 million in qualifying expenditures by January 1, 2024, NevGold would own 100% of the Nutmeg Mountain Gold ProjectNevGold commits to a schedule of future success-based contingent payments totalling C$7.5 million to GoldMining, payable in cash or shares at the election of NevGold: C$0.5 million on completion of a Preliminary Economic Assessment (PEA) on the ProjectC$2.5 million on completion of a Preliminary Feasibility Study (PFS) on the ProjectC$4.5 million on completion of a Feasibility Study (FS) on the Project NevGold will enter into an Investor Rights Agreement with GoldMining with customary rights including pre-emptive equity participation rights and a right to appoint a Board member NevGold CEO, Brandon Bonifacio, comments: “NevGold is extremely pleased to enter the option agreement to acquire Nutmeg Mountain.