NuLegacy Gold Reports Closing 100 Million Units PP
January 15 2021 - 7:30PM
NuLegacy Gold Corporation is pleased to report the
closing of the 100,000,000 units (the “
Units”)
private placement at a price of C$0.125 per Unit to raise gross
proceeds to the Company of C$12.5 million (the
“
Offering”) announced January 9, 2021.
Each Unit consists of one common share of the
Company (a “Common Share”) and one transferable
Common Share purchase warrant (a “Warrant”). Each
Warrant entitles the holder to acquire one Common Share of the
Company at an exercise price of C$0.20 for a period of 36 months
from today.
NuLegacy’s CEO Albert Matter comments that “We
are all very grateful for the support from our existing
shareholders and the financial community, particularly
Canaccord-Genuity (Financial Advisor) and Crescat Capital (Lead
order) and their representatives, as well as several new brokerage
supporters including Echelon Partners; also am recognizing our
corporate staff’s extraordinary efforts in closing this PP in five
business days.
Completing this financing at this time was
supported by our Chairman Alex Davidson, Advisor Quinton Hennigh
and myself underwriting in the aggregate up to the 25% maximum
amount permitted by related parties under MI 61-101 exemptions.
Completing the financing was critical as it allows NuLegacy to
start contracting for the much bigger and more expensive deep
drilling rigs and the superior drillers needed that will soon be in
short supply as the contracting season for Nevada’s 2021 drilling
season is underway…and that’s not like texting for an Uber. This
financing will enable us to accelerate the expanded Spring/Summer
2021 drilling program, and I thank everyone involved for putting
NuLegacy in that position, ‘thank you’.”
The issue has been closed with 100% of it
subscribed for and documented, 82% funded as at this date, and the
balance of the funding pending with delivery of funds undertaken
for Monday, Jan 18th. The net proceeds of the Offering will be used
to carry out an expanded exploration program on the Rift Anticline
beyond the 12 core holes currently planned for the Spring-Summer
2021 drilling program, as well as for general corporate and working
capital purposes.
Certain directors and officers of the Company
have participated in the Offering for an aggregate amount of
7,850,000 Units to date for a total C$981,250. Such portion of the
Offering with insiders constituted a “related party transaction”
for the purposes of Multilateral Instrument 61-101, Protection of
Minority Security Holders in Special Transactions (“MI 61-101”) and
NuLegacy relied upon exemptions from the requirement to obtain a
formal valuation and seek minority shareholder approval for the
Offering on the basis that the fair market value of the
participation by such insiders is less than 25% of NuLegacy’s
current market capitalization. The material change report filed in
connection with the participation of insiders in the Offering was
filed less than 21 days in advance of the closing of the Offering,
which the Company deemed reasonable within the context of current
market conditions and its accelerated drilling and exploration
program.
All securities issued in connection with the
Offering are subject to a four month hold period which, for today’s
securities, expires May 16, 2021. The Company has also paid
finder’s fees in cash, shares and/or warrants to certain finders
and/or advisors in connection with the sale of Units in accordance
with the policies of the TSXV.
On trend: NuLegacy
Gold is focused on confirming high-grade Carlin-style gold deposits
within the ~ 6 sq. km Rift Anticline target in the northwest corner
of its flagship 108 sq. km (42 sq. mile) district scale Red Hill
Property in the Cortez gold trend of Nevada. The Rift Anticline
target is located on trend and adjacentI to the three,
multi-million ounce Carlin-type gold deposits (the Pipeline, Cortez
Hills and Goldrush deposits) which are ranked amongst the world’s
thirty largest, lowest cost and politically safest gold mines and
are three of Nevada Gold Mines’ most profitable mines. II
I The similarity and proximity
of these deposits in the Cortez Trend including Goldrush are not
necessarily indicative of the gold mineralization in NuLegacy’s Red
Hill Property.II As extracted from Barrick’s
Q4-2013 and Q1-2014 reports. As reported by Barrick, the Goldrush
resource contains 8,557,000 indicated ounces of gold within 25.78
million tonnes grading ~10.57 g/t and 1,650,000 inferred ounces
within 5.6 million tonnes grading ~9.0 g/t.
Dr. Roger Steininger, a Director of NuLegacy, is
a Certified Professional Geologist (CPG 7417) and the qualified
person as defined by NI 43-101, Standards of Disclosure for Mineral
Projects, responsible for approving the scientific and technical
information contained in this news release.
On Behalf of the Board Of NuLegacy Gold
Corporation
Albert MatterChief Executive Officer &
DirectorTel: +1 (604) 639 - 3640Email: albert@nuggold.com
For more information about NuLegacy visit:
www.nulegacygold.com or www.sedar.com.
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.
Cautionary Statement on Forward-Looking
Information: This news release contains forward-looking
information and statements under applicable securities laws, which
information and/or statements relate to future events or future
performance (including, but not limited to, the final size and date
of closing of the Offering and the proposed use of proceeds; the
prospective nature of the Rift Anticline target and proposed
exploration and drilling programs thereon and the timing and costs
thereof) and reflect management’s current expectations and beliefs
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, actual results of exploration activities, unanticipated
geological, stratigraphic and structural formations, environmental
risks, operating risks, accidents, labor issues, delays in
obtaining governmental approvals and permits, the availability of
financing, market conditions, future prices for gold, changes in
personnel and other risks in the mining industry. There are no
known resources or reserves in the Red Hill Property, any proposed
exploration programs are exploratory searches for commercial bodies
of ore and the presence of gold resources on properties adjacent or
near the Red Hill Property including Goldrush is not necessarily
indicative of the gold mineralization on the Red Hill Property.
There is also uncertainty about the spread of COVID-19 and the
impact it will have on the Company’s operations, personnel, supply
chains, ability to access properties or procure exploration
equipment, contractors and other personnel on a timely basis or at
all and economic activity in general. 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 by applicable law.
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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