On June 23, 2021, Nevgold Corp. (previously, Silver Mountain Mines Inc.) (the “Company”) announced that it completed a reverse-takeover transaction (the “Transaction”) with the privately-held Nevgold Corp. (as it was then) (“Nevgold”). The Transaction was structured as a three-cornered amalgamation under the provisions of the Business Corporations Act (British Columbia) pursuant to which Nevgold amalgamated with 1288412 B.C. Ltd., a wholly-owned subsidiary of the Company, and shareholders of Nevgold were issued common shares of the Company in exchange for their previously-held common shares of Nevgold on a one-for-one basis. The Company commenced trading on the TSX Venture Exchange under the trading symbol “NAU” on June 29, 2021 as a Tier 2 Mining Issuer. Upon the completion of the Transaction, Morgan Hay was appointed to the board of directors of the Company.
In connection with the Transaction, the Company changed its name from “Silver Mountain Mines Inc.” to “Nevgold Corp.” and Nevgold completed a private placement (the “Financing”) of an aggregate of 15,662,333 subscription receipts at a price of $0.40 per subscription receipt for gross proceeds of $6,264,933. Red Cloud Securities Inc. acted as lead agent for the Financing, with a syndicate of brokers including Haywood Securities Inc. Immediately prior to completion of the Transaction, each subscription receipt was automatically converted into securities of Nevgold, which were each exchanged for one common share of the Company and one-half of one common share purchase warrant of the Company pursuant to the Transaction. Each whole warrant is exercisable to acquire an additional common share of the Company at an exercise price of $0.60 per share for a period of two years.
Concurrently with the completion of the Transaction, the Company acquired a 100% interest in the Limousine Butte and Cedar Wash projects in Nevada from McEwen Mining Inc. through the Company’s wholly-owned subsidiary Nevgold USA Inc. pursuant to the terms of an asset purchase and sale agreement.
The Company is a mineral exploration and development company focused on large-scale mineral systems in Nevada and British Columbia. The Company owns a 100% interest in the Limousine Butte and Cedar Wash projects in Nevada, and the Ptarmigan silver-polymetallic project in southeast British Columbia.
Further details regarding the Transaction, the Financing and the Company can be found on the Company’s website.
