Contents
NexGold and Signal Gold Complete Successful Concurrent Financing
Overview
NexGold Mining Corp. (TSXV:NEXG)(OTCQX:NXGCF) and Signal Gold Inc. (TSX:SGNL)(OTCQB:SGNLF) announced the successful closing of their oversubscribed and upsized concurrent financings, raising $18.5 million in gross proceeds. These funds will support the companies’ plan of arrangement, where NexGold will acquire Signal to enhance their gold mining projects in Northern Ontario and Nova Scotia.
Financing Details
NexGold issued 10,106,250 flow-through units at $0.80 per unit, while Signal issued 120,075,840 subscription receipts at $0.08705 per receipt, with an option for additional receipts. The net proceeds will be used for debt repayment, exploration activities, and general corporate purposes.
Usage of Proceeds
The funds raised from the flow-through units will support the advancement of NexGold’s projects, including those from Signal. NexGold will incur expenses that qualify as Canadian exploration expenses and flow-through mining expenditures. Lastly, the funds will be used for the retirement of certain debt, exploration activities, and working capital.
Key Players
Interested parties acquired a significant number of units in the financing. Sprott Asset Management acquired 2,500,000 units in the financing, signaling confidence in the companies’ future prospects.
Contact Information
For more information on NexGold and Signal, interested parties can visit their respective profiles on SEDAR. Contact information for key personnel is provided for further inquiries.
Forward-Looking Statements
This news release contains forward-looking statements regarding the completion of the proposed transaction and the use of proceeds from the financing. It is recommended that readers review the companies’ annual information forms for a detailed understanding of the risks involved.
Source: Signal Gold Inc.