NuLegacy Gold (NUG-V) Cheapie with a chance. Co. is offering 100 million new shares at 2.5 cents apiece, seeking $2.5-million for a drill program on its Red Hill gold project in Nevada. If successful, the bulk of the financing will cover the drilling, which carries a $1.75-million budget, with the other $750,000 to cover working capital expenses, including management fees and salaries. Five holes are proposed in the drill program on Red Hill -- touted as a potential elephant, but with not even a mouse of a resource estimate.
Mr. Davidson, chairman, says that he and Mr. Matter, CEO, are "determined to see the [financing] of NuLegacy's drilling program succeed." Therefore, both will be buying stock in the placement. But first, they will be sellers: Mr. Davidson says he has "made available for sale" about 7.5 million shares and he intends to invest the full sum raised to buy 4.5 million new shares. Mr. Matter had already "made available" about 10 million shares for sale and he intends to invest the $168,000 raised to buy about 6.7 million new shares.
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