NxGold (NXN-V) Caught Goose's eye. NexGen (NXE-V) group.
News Release Dec 13th 2016 - NxGold Announces Closing of Over-Subscribed Offering
NXGold is pleased to announce that, further to its news release dated December 8, 2016 and December 13, 2016, it has closed a non-brokered private placement of 19,840,600 units for aggregate gross proceeds of approximately $4.96 million.
Each unit consists of one common share of the Company (each, a "Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant") and was issued at a price of $0.25. Each Warrant is exercisable to purchase one additional Share at a price of $0.50 for a period of 36 months following the date of closing of the Offering (the "Expiry Date"). If, at any time after April 14, 2017, the closing price of the Shares on the principal market on which the Shares trade is equal to or greater than $0.75 for a period of 20 consecutive trading days, the Company may accelerate the expiry of the Warrants, in which event the Expiry Date shall be the date (the "Accelerated Expiry Date") which is 30 days following the dissemination of a news release by the Company announcing the Accelerated Expiry Date.
In connection with the Offering, as compensation for the placement of certain of the units, the Company has agreed to pay an aggregate of $135,625 in cash, to certain finders. In addition, the Company has agreed to issue to one eligible finder a total of 441,000 finder's warrants. Each finder's warrant will entitle the holder thereof to purchase one Share for a price of $0.25 for a period of 36 months following the date of closing of the Offering, and is otherwise on the same terms and conditions as the Warrants.
All securities to be issued pursuant to the Offering, including the finder's warrants, will be subject to a hold period expiring April 14, 2017.
This news release is being issued less than 21 days before the closing of the Offering. This shorter period is reasonable and necessary in the circumstances as the size and nature of the Offering was only just determined.
Two directors and two officers of the Company subscribed for an aggregate of 632,600 units. The participation by insiders in the Offering is considered to be a "related party transaction" as defined under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101, as neither the fair market value of the securities being issued, nor the consideration being paid, exceeds 25% of the Company's market capitalization.
The net proceeds of the Offering will be used to satisfy the Company's short term obligations under its previously announced earn-in agreement with Meliadine Gold Ltd., pursuant to which the Company has an exclusive option to earn up to a 70% interest in the Peter Lake Property, and for working capital purposes.
About NxGold
NxGold is a Vancouver-based exploration company. NxGold has entered into an earn-in agreement with Meliadine Gold Ltd. to earn up to a 70% interest in the Peter Lake Gold Property. The Peter Lake Property is located approximately 40 km northwest of Rankin Inlet, Nunavut. The Property covers 4,174 hectares immediately along trend from Agnico Eagle's advanced Meliadine Gold project (with applications pending to increase the size of the Property to 10,670 hectares). The earn-in agreement is subject to final acceptance of the TSX Venture Exchange, conditional acceptance having been obtained.
NxGold Ltd.
Travis McPherson
Vice-President Corporate Development
+1 604 428 4112
NxGold web site coming to theatre near you soon nxgold.ca |
