VANCOUVER - NevGold Corp. (TSXV:NAU) (OTCQX:NAUFF) (Frankfurt:5E50) has finalized the acquisition of 100% interest in the Nutmeg Mountain Gold Project in Washington County, Idaho, by issuing 10 million common shares to GoldMining (NYSE:GLDG) Inc. (TSX:GOLD, NYSE:GLDG). This transaction, part of the Nutmeg Mountain Option Agreement dated June 13, 2022, values the share issuance at $3.0M, calculated at $0.30 per share, the 30-day volume-weighted average price as of December 18, 2023.
The acquisition marks a significant milestone for NevGold, which has been rapidly advancing the project since August 2022. The company released an initial Mineral Resource Estimate (MRE) on August 17, 2023, which detailed 1,007,000 Indicated ounces of gold and 275,000 Inferred ounces. The MRE was prepared in accordance with National Instrument 43-101 (NI 43-101) standards.
Brandon Bonifacio, CEO of NevGold, stated that owning Nutmeg Mountain fully enhances the company's position, citing the project's scale, grade, and surface mineralization as key advantages. He also emphasized the project's location in a premier mining jurisdiction with existing infrastructure, which is expected to facilitate rapid advancement.
Following the share issuance, GoldMining's stake in NevGold has increased to approximately 29.4% of outstanding common shares on an undiluted basis, and approximately 30.5% when considering the partially-diluted basis with the exercise of warrants. The issued securities are subject to a four-month hold period, ending on May 19, 2024, as per securities laws and the policies of the TSX Venture Exchange, which is yet to give final approval for the transaction.
This strategic move aligns with NevGold's focus on exploring and developing large-scale mineral systems in Nevada and Idaho. The company has a 100% interest in other projects within these regions, including the Limousine Butte and Cedar Wash gold projects in Nevada.
The information regarding the share issuance and acquisition of Nutmeg Mountain is based on a press release statement from NevGold Corp.
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