NexGold and Signal Gold Complete Upsized Concurrent Financing for $18.5 million
Summary
Not for distribution to U.S. newswire services or dissemination in the United StatesTORONTO, Nov. 06, 2024 (GLOBE NEWSWIRE) -- NexGold Mining Corp. (TSXV: NEXG; OTCQX: NXGCF) (NexGold) and Signal Gold Inc. (TSX: SGNL; OTCQB: SGNLF) (Signal) are pleased to announce that, further to the companies joint news releases dated October 10, 2024 and October 23, 2024, the companies have closed their previously announced oversubscribed and upsized concurrent financings for aggregate gross proceeds of $18.5 million. Further, NFT Unit Warrants issued on conversion of the Subscription Receipts will be adjusted in accordance with their terms such that the NFT Unit Warrants will be exercisable to acquire NexGold Shares based on the Exchange Ratio.The net proceeds of the Hard Dollar Financing are expected to be used by the combined company to fund the retirement of certain debt, the exploration and advancement of the Goliath and Goldboro Projects and for working capital and general corporate purposes. The finders warrants of Signal will be economically equivalent to the NFT Unit Warrants, and following closing of the Transaction, each such finders warrant will be adjusted in accordance with its terms and exercisable to acquire NexGold Shares at a price of $0.95 per NexGold Share for a period of 24 months.All securities issued in the Concurrent Financing are subject to a statutory four-month and one day hold period from the date of issuance, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside of Canada.Certain related parties of NexGold and Signal (together, the Interested Parties) purchased or acquired direction or control over a total of 537,500 FT Units and 5,166,645 Subscription Receipts collectively in each financing (with 500,000 FT Units being acquired by related parties of NexGold participating in the FT Financing and 1,033,890 Subscription Receipts being acquired by Signal related parties in the Hard Dollar Financing). The deposits benefit substantially from excellent access to the Trans-Canada Highway, related power and rail infrastructure and close proximity to several communities including Dryden, Ontario. The companies undertake no obligation to update forwardlooking statements if circumstances or managements estimates or opinions should change except as required by applicable securities laws.