NuLegacy Gold (NUG-V) closes $1.3-million first tranche
Nov 21, 2012 - News Release
NuLegacy Gold Corp. has closed the initial tranche of its non-brokered private placement announced Oct. 18, 2012. The company has sold a total of 8.8 million units of the 10 million units offered at a price of 15 cents per unit for gross proceeds of $1.3-million.
Each unit consists of one common share and one-half share purchase warrant, with each full warrant entitling the holder thereof to purchase one additional common share of the company for a period of 24 months, subject to acceleration, at a price of 25 cents during the first 12 months and 35 cents during the last 12 months. The net proceeds of the private placement will be used to finance the company's gold exploration programs in Nevada and for general corporate purposes.
All securities issued under the initial closing are subject to a four-month-and-one-day hold period expiring March 21, 2013. Four hundred thousand units were acquired by James E. Anderson, the company's chief executive officer and his immediate family, bringing his holdings in the company to 1.97 million excluding his warrants/options. As well, 3.35 million units were purchased by W.L. Wilson, bringing his total of direct and indirect ownership of shares and warrants to 6.7 million or 9.9 per cent of the company (on an undiluted basis). Mr. Wilson is the president of Idaho Resources Corp., the lessor of the mining claims comprising the Idaho portion of the company's Red Hill project in Eureka county, Nevada.
Finders' fees totalling $24,140 cash and 171,600 warrants were paid to certain registered finders in connection with the initial closing, with each finder warrant entitling the holders to purchase one common share of the company for a period of two years.
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