NuLegacy Gold Announces C$5.625 Million Private Placement
May 18, 2020 16:30 ET | Source: NuLegacy Gold Corporation
VANCOUVER, British Columbia, May 18, 2020 (GLOBE NEWSWIRE) -- NuLegacy Gold Corporation (“NuLegacy” or the “Company”) (TSXV: NUG; OTCQB: NULG.F) announces that it has arranged a non-brokered private placement of up to 75,000,000 units (the “Units”) at a price of C$0.075 per Unit to raise gross proceeds to the Company of C$5.625 million (the “Offering”).
Each Unit will consist of one common share of the Company (a “Common Share”) and one-half of one transferable Common Share purchase warrant (each full warrant, a “Warrant”). Each Warrant will entitle the holder to acquire one Common Share of the Company at an exercise price of C$0.125 for a period, subject to acceleration, of 24 months following closing of the Offering.
NuLegacy’s CEO Albert Matter comments that “Our recent winter 2019 drill program and subsequent analysis and geological remodeling strongly support our analysis that the Rift Anticline target bears significant structural and stratigraphic similarities and connectors to Barrick Gold’s Goldrush Carlin-style gold systems approximately 8 kilometers to the northwest.I
We are utilizing the improved gold market conditions to strengthen our treasury. This will enable us to expand our CSAMT and additional gravity surveys over the Rift Anticline this summer to further advance our interpretation and site targeting for a larger and deeper drill program on the Rift this fall pending approval of our US$500,000 expanded plan of operations over the Red Hill property.”
The net proceeds of the Offering will be used to carry out an expanded exploration program on the Rift Anticline including 14-16 planned core holes, as well as for general corporate and working capital purposes.
The Offering is subject to, among other things, acceptance of the TSX Venture Exchange (the “TSXV”) with an initial closing scheduled for on or about May 29, 2020. All securities issued pursuant to the Offering will be subject to a four month hold period from the date of closing. The Company may pay a cash fee and/or compensation warrants to certain finders and/or advisors in connection with the sale of Units in accordance with the policies of the TSXV.
About NuLegacy Gold Corporation: Focused on confirming high-grade Carlin-style gold deposits on its premier 108 sq. km (42 sq. mile) district scale Red Hill Property in the Cortez gold trend of Nevada. The Red Hill Property is located on trend and adjacentI to the three multi-million ounce Carlin-type gold deposits (the Pipeline, Cortez Hills and Goldrush deposits) that are amongst Barrick Gold’s largest, lowest cost and politically safest gold minesII.
I The similarity and proximity of these deposits in the Cortez Trend including Goldrush is not necessarily indicative of the gold mineralization in NuLegacy’s Red Hill Property.
II As extracted from Barrick’s Q4-2013 and Q1-2014 reports. As reported by Barrick, the Goldrush resource contains 8,557,000 indicated ounces of gold within 25.78 million tonnes grading ~10.57 g/t and 1,650,000 inferred ounces within 5.6 million tonnes grading ~9.0 g/t.
Dr. Roger Steininger, a Director of NuLegacy, is a Certified Professional Geologist (CPG 7417) and the qualified person as defined by NI 43-101, Standards of Disclosure for Mineral Projects, responsible for approving the scientific and technical information contained in this news release.
ON BEHALF OF THE BOARD OF NULEGACY GOLD CORPORATION
Chief Executive Officer & Director
Tel: +1 (604) 639 - 3640
For more information about NuLegacy visit: www.nulegacygold.com or www.sedar.com.