NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) surged on the markets Wednesday after announcing that it has closed a US$10-million-dollar financing deal. Shares rose by over 12 per cent on the TSX-V and saw gains in excess of 9 per cent from Tuesday’s closing price on the OTC Markets by the end of the session.
Funding will be used to advance the company’s precious metal and critical mineral projects in the United States. Specifically, the Limousine Butte gold-antimony operation in Nevada, the resource stage Nutmeg Mountain gold project in Idaho, and the Zeus copper exploration asset.
Through the brokered private placement, finalized on Nov. 19, the investor has received units of the company valued C$0.65 apiece. They are comprised of one common share and half a share purchase warrant. Each warrant will entitle the bearer to buy a common share for C$0.90 for the next two years.
“We are pleased to announce the closing of our C$10 million financing,” said chief executive Brandon Bonifacio, “which provides the company with a strong financial position to continue to advance its portfolio of assets.”
He explained that NevGold’s primary focus is advancing the Limousine Butte project and producing an inaugural mineral resource estimate by the end of the year. Surging demand for antimony and escalating government interest in the commodity within the U.S. has made the site become a top priority.
Last month, NevGold identified a new high-grade antimony zone on the property with unprecedented grades as high as 8.9 per cent antimony. Discovering the “Bullet Zone” has built upon a steady stream of favourable mineralization Limo Butte has yielded in core and grab samples over the past few months.
On Sept. 25, for instance, NevGold reported intercepting a high-grade oxide gold antimony (Sb) intercept containing 11.41 grams per tonne gold equivalent (AuEq) over 6.1 metres (10.60 g/t Au and 0.18 per cent Sb).
“We strongly believe that we have one of the most advanced gold-antimony assets in the United States,” Bonifacio added.
“The timing is optimal as there is a clear commitment from the government to advance high-quality, domestic, critical mineral projects.”
Read more: NevGold edges closer to gold-antimony resource with latest Limousine Butte results
American government invests millions in antimony resources
This commitment has been clearly demonstrated by large-scale investments United States federal agencies have been making in development-stage antimony projects. In late September, the U.S. Department of War awarded Nova Minerals Ltd (OTCMKTS: NVAAF) (FRA: QM3) (ASX: NVA) US$43.4 million to expedite development of its Estelle gold-antimony (Au-Sb) project in Alaska.
Earlier that month, United States Antimony Corp (NYSEAMERICAN: UAMY) secured a US$245-million-dollar antimony ingot supply deal with the U.S. Defense Logistics Agency. This company has the most advanced refining and processing capabilities in the country.
Additionally, Perpetua Resources Corp (TSE: PPTA) (NASDAQ: PPTA) has received over US$80 million in government backing for its Stibnite Au-Sb operation.
“The strongly supported financing is a testament to the growing NevGold platform,” NevGold’s CEO concluded. “We are thankful to our existing and new shareholders, and Clarus Securities [the offering’s sole agent and bookrunner] on the successful offering.”
Read more: NevGold targets U.S. critical mineral supply chain with new antimony-gold find
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