Nexus Gold to option Dorset for $2.75-million

Apr 23, 2020

2020-04-23 13:01 ET – News Release

Mr. Alex Klenman reports

NEXUS GOLD OPTIONS DORSET GOLD PROJECT FOR $2.75 MILLION IN CASH AND WORK COMMITMENTS

Nexus Gold Corp. has entered into a definitive property option agreement with Leocor Ventures Inc., dated April 22, 2020, pursuant to which the parties intend to co-operate in the development of the recently acquired Dorset gold project, located in Newfoundland, south of the Pine Cove gold mine.

Under the terms of the Option Agreement, Leocor will be granted the right to acquire up to a one-hundred percent interest in the Project in consideration for completing a series of cash payments totaling $1,250,000 over a four year term, of which $100,000 is due and payable to the Company upon TSX approval, and incurring expenditures on the Project of at least $1,500,000 over a five year term. Leocor is required to make the cash payments, and incur the expenditures, in accordance with the following schedule in order to maintain the Option Agreement in good standing:

DeadlineCash PaymentsExpenditures Initial $100,000 Nil Year 1 *$50,000 Nil Year 2 *$100,000 $150,000 Year 3 $400,000 $200,000 Year 4 $600,000 $400,000 Year 5 Nil $750,000 Total $1,250,000 $1,500,000

* Payable in common shares of Leocor, at the election of Leocor, based on the market price of the common shares of Leocor on the Canadian Securities Exchange at the time of issuance.

Leocor will also assume responsibility for a two percent net smelter returns royalty on the Project, currently held by United Gold Inc. and Margaret Duffitt.

Alex Klenman is a director and senior officer of both the Company and Leocor, however the Option Agreement is not considered a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions . The Company and Leocor are considered to be “non-arms’ length parties” under the policies of the TSX Venture Exchange, and as a result the Option Agreement is subject to review by the TSX Venture Exchange.

The Option Agreement has been reviewed and approved by the independent directors of each of the Company and Leocor, but the acquisition of any interest in the Project by Leocor remains subject to the approval of the TSX Venture Exchange.

About the Company

Nexus Gold is a Canadian-based gold development company with an extensive portfolio of ten exploration projects in West Africa and Canada. The Company’s West African-based portfolio totals five projects encompassing over 750-sq kms (75,000+ hectares) of land located on active gold belts and proven mineralized trends, while it’s 100%-owned Canadian projects include the McKenzie Gold Project in Red Lake, Ontario, the New Pilot Project, located in British Columbia’s historic Bridge River Mining Camp, and four prospective gold and gold-copper projects (3,700-ha) in the Province of Newfoundland.

We seek Safe Harbor.

https://nxs.gold/