NevGold Corp. (TSXV:NAU)(OTCQX:NAUFF)(Frankfurt:5E50) has issued 3,658,536 of its common shares to GoldMining Inc. (TSX:GOLD)(NYSE:GLDG) in line with its Nutmeg Mountain acquisition agreement.
The company announced the issuance of payment last week and is waiting for approval from the TSX Venture Exchange. Under the Agreement, NevGold will issue the shares at $0.41 each for a total of $1.5 million.
Nutmeg Mountain has a 2020 mineral resource estimate of 910,000 indicated ounces of gold (43.5 Mt at 0.65 g/t Au), and 160,000 Inferred ounces of gold (9.1 Mt at 0.56 g/t Au) with significant resource expansion and exploration upside. Nutmeg is located in Western Idaho approximately 80 kilometres north-northwest of Boise and approximately 20 kilometres east of Weiser, Idaho. Nutmeg is a low-sulfidation epithermal gold-silver deposit with similar geology to several other Western USA epithermal deposits and has had over 70,000 meters of historical drilling with 934 core, RC, and rotary holes.
NevGold acquired an option on the Nutmeg Mountain Gold Project previously known as Almaden from GoldMining this June. The area is well-located relative to road, power and water infrastructure.
NevGold’s stock went up by 2.7 per cent Monday to $0.38 on the Canadian Venture Exchange.
GoldMining owns over 10 per cent of outstanding 3,658,536 shares through the Share Issuance Payment.
Before the closing of the Share Issuance Payment, GoldMining held, and had control and direction over, 8,902,125 common shares and 1,488,100 warrants of the company exercisable into 1,488,100 common shares.
After completion of the share issuance payment, GoldMining will hold 12,560,661 common shares and 1,488,100 warrants, representing approximately 17.6 per cent of the company’s outstanding common shares on an undiluted basis and approximately 19.3 per cent on a partially-diluted basis assuming the exercise of the warrants held by GoldMining.
Last November, NevGold announced that its drill program at Resurrection Ridge in Nevada intercepted more oxide gold on its last assay and expanded its mineralized footprint by over 100 meters.