NuLegacy Gold Corporation Closes Marketed Private Placement for C$7.5 Million
October 08 2019 - 11:45AM
NuLegacy Gold Corporation
(“
NuLegacy” or the “
Company”)
(TSXV:
NUG; OTCQB:
NULG.F) is
pleased to announce it has closed the fully marketed private
placement financing announced on September 17, 2019 (the
“
Offering”). The Company has completed the
maximum Offering of 100,000,000 units (the
“
Units”) of the Company at a price of $0.075 per
unit for aggregate gross proceeds of $7,500,000.
Each Unit consists of one common share of the
Company (a “Common Share”) and one-half of one
Common Share purchase warrant (each full warrant, a
“Warrant”). Each Warrant entitles the holder to
acquire one Common Share of the Company at an exercise price of
$0.12 for a period of 36 months following the closing of the
Offering.
“Our thanks to our existing and new shareholders
for their support, and the members of Cormark and Canaccord who
together with our team produced this great result,” said Albert
Matter, NuLegacy’s CEO. “Drilling will commence shortly, and
details of the Fall 2019/Spring 2020 exploration program will be
reported as finalized.”
The net proceeds of the Offering will be used to
carry out the budgeted drilling program for the Company’s 100%
owned/controlled Red Hill Property, as well as for general
corporate and working capital purposes.
Directors and officers of the Company
participated in the Offering for an aggregate of 7,119,691 Units
for gross proceeds of $533,977, and Cormark Securities Inc., as
lead agent and sole book runner, together with Canaccord Genuity
Corp. (together the “Agents”), acted as agents for
the Offering. The Company paid the Agents a cash commission equal
to 6% (3% for purchasers on the Company’s president’s list (the
“President’s List”)) of the gross proceeds from
the Offering and issued broker warrants (“Broker
Warrants”) equal to 6% (3% for President’s List
purchasers) of the total number of Units sold. Each Broker Warrant
entitles the holder to purchase one Common Share of the Company at
a price of $0.075 for a period of 36 months following closing of
the Offering.
The Common Shares, Warrants and Broker Warrants
issued pursuant to the Offering, and any Common Shares issued upon
the exercise of Warrants or Broker Warrants, are subject to a four
month and one day hold period expiring February 9, 2020. The
Company previously received TSX Venture Exchange
(“TSXV”) conditional acceptance for the Offering
on October 1, 2019 and will now seek TSXV final acceptance for the
Offering.
Gregory T. Chu, A Law Corporation acted as legal
counsel to NuLegacy and Cassels Brock & Blackwell LLP acted as
legal counsel to the Agents.
This new release does not constitute an offer to
sell or a solicitation of an offer to buy any of the securities in
the United States. The securities have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or any state securities laws
and may not be offered or sold within the United States or to or
for the account or benefit of a U.S. person (as defined in
Regulation S under the U.S. Securities Act) unless registered under
the U.S. Securities Act and applicable state securities laws or an
exemption from such registration is available.
To learn more about NuLegacy Gold Corp, please
visit: www.nulegacygold.com or NuLegacy's SEDAR profile at
www.sedar.com.
ON BEHALF OF THE BOARD OF NULEGACY GOLD
CORPORATION
Albert J. MatterChief Executive Officer &
DirectorTel: +1 (604) 639 - 3640Email: albert@nuggold.com
Cautionary Statement on Forward-Looking
Information
This news release contains forward-looking
information and forward-looking statements under applicable
securities laws, which information and/or statements relate to
future events or future performance (including, but not limited to,
the proposed use of proceeds from the Offering) and reflect
management’s current expectations and assumptions. Such
forward-looking information and statements reflect management’s
current beliefs and are based on assumptions made by and
information currently available to the Company. Readers are
cautioned that such forward-looking information and statements are
neither promises nor guarantees, and are subject to risks and
uncertainties that may cause future results to differ materially
from those expected including, but not limited to, the availability
of financing, market conditions and future prices for gold, changes
in personnel, actual results of exploration activities,
environmental risks, operating risks, accidents, labour issues,
delays in obtaining governmental approvals and permits, and other
risks in the mining industry. There are no known resources or
reserves in the Red Hill Property and any proposed exploration
programs are exploratory searches for commercial bodies of ore. In
addition, the presence of gold resources on properties adjacent or
near the Red Hill Property is not necessarily indicative of the
gold mineralization on the Red Hill Property. All the
forward-looking information and statements made in this news
release are qualified by these cautionary statements and those in
our continuous disclosure filings available on SEDAR at
www.sedar.com. The forward-looking information and statements
in this news release are made as of the date hereof and the Company
does not assume any obligation to update or revise them to reflect
new events or circumstances save as required under applicable
securities legislation.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
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