NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) is raising CAD$5 million in a private placement to put towards its gold-antimony efforts at Limousine Butte in Nevada, and Nutmeg Mountain gold project.
The company announced an agreement with Clarus Securities to act as lead agent and sole bookrunner on Thursday. The placement will sell units of the company, consisting of one share and one warrant, for CAD$0.30 a unit. The warrant will give the holder the chance to buy antoher share at CAD$0.45 for two years after the offering closes.
The company will conduct the offering under an agency agreement with the agents, signed on or before the closing date. The agents will receive a cash commission equal to 7.0 per cent of the gross proceeds. They will also receive non-transferable broker warrants equal to 7.0 per cent of the units sold.
NevGold’s Limousine Butte project in eastern Nevada presents a compelling dual-commodity opportunity, combining oxide gold and critical antimony mineralization. Recent evaluations have revealed significant gold-antimony intersections in historical drill holes, including 1.20 grams per tonne (g/t) gold and 0.64 per cent antimony over 54.9 meters, with higher-grade intervals reaching over 2.12 g/t gold and more than 1 per cent antimony over 12.2 meters .
Surface sampling has identified antimony concentrations up to 10 per cent in rock chips, particularly at Resurrection Ridge, where a 3 km by 1 km geochemical anomaly indicates a robust mineralizing system.
The gold and antimony are found in older shale rocks that have been hardened by silica. These rocks were broken and altered along crossing fault lines, forming mineral-rich zones.
Read more: NevGold closes its Nutmeg Mountain acquisition with Goldmining for $3 million
Read more: NevGold’s long intervals of antimony & gold mineralization turn heads
NevGold intends on reassaying historic drill cores
Given antimony’s designation as a critical mineral in the United States and the lack of domestic production, Limousine Butte’s antimony potential is particularly significant .
NevGold plans to re-assay historical drill cores and conduct targeted drilling to further delineate the extent of both gold and antimony mineralization .
Antimony’s geopolitical importance has grown due to its role in national defense, energy storage, and semiconductor applications. China currently controls over 80 per cent of the global antimony supply, raising serious concerns about supply security. In 2020, former U.S. President Donald Trump signed an executive order declaring a national emergency related to America’s reliance on foreign sources of critical minerals. This order identified antimony as one of the key minerals at risk.
Additionally, the U.S. government launched the FastTrack Critical Minerals program to support domestic production. The program prioritizes projects that reduce reliance on foreign-controlled supply chains.
Perpetua Resources Corp.‘s (NASDAQ: PPTA) (TSE: PPTA) Stibnite Gold Project in Idaho—one of the only potential domestic antimony sources—was selected for FastTrack status. Furthermore, the U.S. Department of Defense has directly funded Perpetua’s efforts to secure a stable domestic antimony supply.
The offering is expected to close on May 29, 2025.
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