NevGold Corp. (TSXV:NAU) (OTCQX:NAUFF) (Frankfurt:5E50) closed its acquisition of the Nutmeg Mountain operation in Idaho from gold company Goldmining Inc. (TSX: GOLD) with an all-share deal of approximately USD$3 million.
Announced on Monday, NevGold issued 10 million shares to Goldmining, which had previously owned 20 per cent of the outstanding common shares.
Before the share issuance payment closed, GoldMining possessed and controlled over 16 million common shares and 1.4 million warrants of the company, which could be converted into the same amount of shares. This represented approximately 20.6 per cent of the company’s outstanding common shares without considering dilution and approximately 22.1 per cent when factoring in the exercise of GoldMining’s warrants.
When the payment is complete, GoldMining will hold and control over 26 million common shares and 1.4 million warrants. This bumps the company’s percentage owned to approximately 29.4 per cent of the company’s outstanding common shares without accounting for dilution, and approximately 30.5 per cent when considering the potential exercise of GoldMining’s warrants.
“After less than 12 months of working on the project we released our initial Mineral Resource Estimate in August-2023, where we delivered an open-pit, oxide, heap-leachable gold Indicated Mineral Resource of 1.01 Mozs and Inferred Mineral Resource of 275kozs,” said Brandon Bonifacio, CEO of NevGold.
The company intends to focus its efforts on drill targets both on private ground and ground permitted by the Bureau of Land management unpatented claims.
NevGold also has projects in British Columbia and Nevada. The Ptarmigan Property consists of a 9,900-hectare land package situated 300 kilometres west of Calgary, AB. In Nevada, however, the company has done considerable work on its properties at Limousine Butte and Cedar Wash.
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NevGold continues to expand in Nevada
During the summer, NevGold uncovered new and previously untested areas within its Limousine Butte Project in Nevada. This discovery followed a six-month period in which the company analyzed and reinterpreted data from its 2022 drilling campaign.
In July, the company publicly disclosed an updated geological model and 2023 drill targeting.
New geological mapping and 3D modeling of the drilling results from 2022 have unveiled significant discoveries regarding the Exchequer Fault, a major geological feature near the Cherry Creek Project. Researchers have identified that the fault underwent lateral displacement in a specific direction, resulting in a shift along the Cherry Creek Range.
This lateral movement is most conspicuous immediately south of the Golden Butte mine, where gold mineralization is relatively scarce. This newfound comprehension of the fault has brought attention to promising exploration areas.
One of these areas lies southwest of Resurrection Ridge, known as the “Connector Zone,” while the other is northeast of Resurrection Ridge, leading to the gold deposits at Coffee Mug.
Nevada is highly attractive to companies due to its favourable business climate, characterized by low taxation and minimal regulatory burdens. Additionally, the state’s abundant natural resources, particularly its rich mineral deposits, make it a prime destination for mining and related industries.
For example, Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) Calibre’s Nevada operations yielded 10,519 ounces of gold in Q4, 2023 and anticipates more coming out with the start of production at the company’s Gold Rock project close to its Pan Mine. This year, the company anticipates producing between 275,000 and 300,000 ounces of gold at its operations in Nicaragua and Nevada.
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