On January 19, 2024, NevGold Corp. (“NevGold”) exercised its option to acquire a 100% interest in the Nutmeg Mountain gold project located in Washington Country, Idaho (the “Property”) from GoldMining Inc. (“GoldMining”), a TSX and NSYE American-listed issuer, pursuant to the terms of an option agreement dated June 13, 2022 (the “Option Agreement”) between NevGold, GoldMining and their respective subsidiaries.
In order to exercise the option under the Option Agreement, NevGold issued common shares of NevGold with a total value of $9,000,000 to GoldMining and completed $2,250,000 of qualifying expenditures on the Property. Under the terms of the Option Agreement, GoldMining subscribed for securities of NevGold in two separate private placement financings. NevGold also granted GoldMining a pre-emptive participation right to maintain its percentage ownership interest in NevGold’s shares, and the right to appoint one director to NevGold’s board of directors, pursuant to the terms of an investor rights agreement between the parties. On closing, NevGold delivered a mortgage securing contingent obligations of NevGold totaling $7,500,000, which may be triggered upon NevGold completing certain technical reports in respect of the Property, and may be settled in cash or shares of NevGold. As a result of the share issuances to GoldMining, GoldMining has obtained ownership of over 20% of the outstanding NevGold shares, resulting in GoldMining becoming a “control person” of NevGold, as defined under applicable securities laws, which was approved by disinterested shareholders of NevGold at a meeting held on June 30, 2023.
NevGold is a mineral exploration and development company targeting large-scale mineral systems in the districts of Nevada and Idaho. NevGold owns a 100% interest in the Limousine Butte and Cedar Wash gold projects in Nevada and the Nutmeg Mountain gold project in Idaho.
Further details regarding NevGold and the acquisition of the Property can be found on NevGold’s website. NevGold trades under the symbol “NAU” on the TSX Venture Exchange.
