Unique Crypto Strategies
  • Business
  • Politics
  • Investing
  • World
  • Business
  • Politics
  • Investing
  • World

Unique Crypto Strategies

Investing

NexGold and Signal to Merge, Creating Near-term Canadian Gold Producer

by October 16, 2024
October 16, 2024
NexGold and Signal to Merge, Creating Near-term Canadian Gold Producer

NexGold Mining (TSXV:NEXG,OTCQX:NXGCF) and Signal Gold (TSX:SGNL,OTCQB:SGNLF) announced plans to merge on October 10 with the aim of creating a near-term gold developer with assets in Canada.

The transaction will create a combined entity focused on advancing two gold projects in the country: NexGold’s Goliath gold complex in Northern Ontario and Signal’s Goldboro project in Nova Scotia.

The deal will bring together approximately 4.7 million gold ounces in the measured and indicated categories, plus an additional 1.3 million gold ounces categorized as inferred resources.

The companies’ goal is to ultimately produce over 200,000 ounces of gold per year.

“With the Transaction, we have significantly de-risked the combined company as it will no longer be a single asset company but rather a company with a pipeline of low-cost, low risk, high return mine development and expansion projects in Canada,’ saud Morgan Lekstrom, president of NexGold, in last week’s press release.

“Not only do we have a path to construction on both Projects when project financing is obtained, but both historic gold districts have demonstrated tremendous expandability and upside potential that could contribute to larger, longer-life Projects.’

Under the terms of the merger, NexGold will acquire Signal in an all-share transaction. Each Signal share will be exchanged for 0.1244 shares of NexGold, which will mean that existing NexGold shareholders will own approximately 71 percent of the new company, while Signal shareholders will hold the remaining 29 percent.

To support the merger, both companies will also conduct a concurrent non-brokered private placement aiming to raise total gross proceeds of up to C$11.5 million. NexGold will raise C$5 million, while Signal will raise C$6.5 million.

Once combined, the new entity will focus on growth within the Goliath and Goldboro districts through exploration drilling, while assessing additional opportunities for corporate growth.

A February 2023 prefeasibility study for NexGold’s Goliath project outlines a nine year mine life with average annual production of approximately 109,000 ounces. It is being remediated as an open-pit and underground mine. Signal’s Goldboro project, which is projected to be an open-pit mine, has an ancipated 11 year life with estimated annual output of around 100,000 ounces.

The merger comes at a time of gold price strength, with the yellow metal hitting record levels this year.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
0
FacebookTwitterGoogle +Pinterest
previous post
How to Invest in Quantum Computing Companies
next post
Skyharbour Partner Company Terra Clean Energy Plans Winter 2025 Exploration Program at the South Falcon East Uranium Project, Athabasca Basin, Saskatchewan

You may also like

Stardust Power Inc. Announces Pricing of $5.75 Million...

Grant of Equity Incentives

Beyond Lithium Announces Completion of Amendments to Option...

Zinc Price 2024 Year-End Review

Dore Copper Announces Shareholder Approval of Plan of...

BHP to Spend up to A$40M to Explore...

Trading Halt

Forum Energy Metals to Attend PDAC Convention March...

Energy Fuels Announces Q3-2024 Results, Including Active Uranium...

After US$1.5 Billion Gold Payday, Chinese Billionaire Pivots...

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Michelle Obama facing backlash over claim about women’s reproductive health

    • Hamas agrees to release 10 more hostages

    • ROBERT MAGINNIS: 9 signs Beijing’s Taiwan invasion may be imminent

    • Hamas responds to US plan for Gaza ceasefire, says proposal aimed at ‘permanent ceasefire’

    • Nearly 80 aid trucks carrying food ransacked in Gaza Saturday, says WFP as famine worsens

    Categories

    • Business (479)
    • Investing (2,276)
    • Politics (3,724)
    • Uncategorized (1)
    • World (2,411)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: uniquecryptostrategies.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 uniquecryptostrategies.com | All Rights Reserved


    Back To Top