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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Gold

NevGold shareholders approve GoldMining as new ‘control person’ at special meeting

99.6 per cent of shareholders in attendance voted in favour

NevGold’s recent Nutmeg Mountain assays indicate findings suitable for heap leaching
Nutmeg Mountain drill. Image via NevGold Corp.

NevGold Corp. (TSXV:NAU) (OTCQX:NAUFF) (Frankfurt:5E50) company shareholders approved GoldMining Inc. (TSX: GOLD) (NYSE: GLDG) as a new ‘control person’ at its Annual General and Special Meeting (AGSM) of shareholders in late June.

The company said on Friday that it issued 4.1 million NevGold shares, equating to USD$1.5 million at $0.365 to GoldMining, as per the Nutmeg Mountain Option Agreement it signed in June 2022.

In this context, a control person refers to an individual or entity that has significant influence or control over a company. They typically hold a substantial number of shares or voting rights, which allows them to exercise significant decision-making power and influence the direction of the company’s operations and policies.

A total of 33 million shares, representing 46.3 per cent of the company’s total shares, were represented at the AGSM and of that 19 million shares (99.6 per cent) voted in favour of the new control person, while 94,639 (0.5 per cent) voted against.

The approval for creating the new control person needed more than half of the votes from shareholders who were not involved in the matter, at the special meeting. GoldMining’s votes were excluded from this count.

GoldMining received 4.1 million shares through the share issuance payment. Before the payment was finalized, GoldMining already possessed and had control over 12.5 million common shares and 1.4 million warrants of the Company. These warrants could be exercised to obtain 1.4 million common shares. This ownership represented approximately 17.6 per cent of the company’s outstanding common shares without considering potential dilution and about 19.3 per cent with partial dilution assuming the exercise of GoldMining’s warrants.

GoldMining now holds and controls 16 million common shares and 1.4 million warrants. This ownership represents approximately 22.1 per cent of the company’s outstanding common shares without considering potential dilution and approximately 23.6 per cent with partial dilution assuming the exercise of GoldMining’s warrants.

Read more: NevGold discovers new untested areas at Limousine Butte

Read more: NevGold discovers oxide gold from the surface at Nutmeg Mountain

NevGold bought Nutmeg Mountain in June 2022

In June 2022, the company bought Nutmeg Mountain from GoldMining. The acquired property already had a historical resource dating back to 2020. However, as the company began drilling on the site, it saw its recent accomplishments as a chance to revise and update the resource estimation.

The latest drilling findings suggest that heap leach processing could be a viable option. One specific drill hole, NMD0004, revealed an intercept of 0.80 grams of gold per tonne over a distance of 51.5 meters from the surface (in the oxidized zone). This intercept also included a higher-grade section of 1.40 grams of gold per tonne over 11.3 meters, starting from a depth of 9.8 meters (still in the oxidized zone).

The company’s drill program in 2023 has uncovered other promising findings. For example, Hole NMD0003 intercepted 0.72 grams of gold per tonne over a span of 79.3 meters, starting from a depth of 10.4 meters (in the oxidized zone). This intercept also included a higher-grade section of 2.32 grams of gold per tonne over 13.4 meters, beginning from a depth of 25.6 meters (still in the oxidized zone).

Another hole, NMD0001, encountered 0.56 grams of gold per tonne over a distance of 23.9 meters, starting from a depth of 24.1 meters. This intercept also included a section of 0.89 grams of gold per tonne over 11.4 meters, beginning from a depth of 25.6 meters. Additionally, near the bottom of the hole, there was a notable intercept of 4.33 grams of gold per tonne. Hole NMD0001 was lost within the mineralization.

NevGold shares rose by 1.3 per cent to $0.385 on Friday on the TSX Venture Exchange.

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NevGold is a sponsor of Mugglehead news coverage

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