NuLegacy Gold (TSXV: NUG | OTC: NULGF) has announced Alexander Davidson, NuLegacy’s chairman, has made available for sale ~7.5M shares and will use the full proceeds to subscribe for 4.5M of the 2.5 cents units of this private placement. This is further to NuLegacys’ earlier press release announcing a private placement of 100M units at C$0.025 each for gross proceeds of C$2.5M.
Davidson commented, “As reported on 17 September, Mr. Matter and I are determined to see the above referenced funding of NuLegacy’s drilling programme succeed.”
Up to 80% of the net proceeds will be used to carry out NuLegacy’s planned 2023 exploration programme of five or more reverse circulation drill holes on the company’s flagship Red Hill property in Nevada, at a budgeted cost of US$1.25M.
The balance of the net proceeds will be used for general corporate and working capital purposes including management fees and salaries.
Drilling is expected to begin within ten days of closing, with an initial closing expected on or about 12 October 2023, or earlier if the company has received subscriptions for more than 50% of the offering.
Each unit consists of one common share and one transferable common share purchase warrant. Each warrant will entitle the holder to acquire one common share for a five-year term following closing of the offering at an exercise price of C$0.05, subject to acceleration only in the event of a take-over bid, merger, plan of arrangement or similar business combination transaction of the company, provided the then trading price of the company’s shares is at least C$0.15 each.
NuLegacy’s CEO Albert Matter comments that “In the event of over-subscription, the company will seek to accommodate long-term shareholders.”
For further information, please visit: www.nulegacygold.com
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