Nexus Gold closes $586,425 initial tranche of placement

Jan 2, 2020

2019-12-24 19:35 ET – News Release

Mr. Alex Klenman reports

NEXUS GOLD COMPLETES INITIAL TRANCHE OF PRIVATE PLACEMENT FINANCING

Nexus Gold Corp. has completed an initial tranche of its non-brokered private placement through the issuance of 6,249,000 non-flow-through units at a price of five cents per non-flow-through unit and 4,981,364 flow-through units at a price of 5.5 cents per flow-through unit. In connection with completion of the initial tranche, the company raised gross proceeds of $586,425.

Each non-flow-through unit and each flow-through unit consist of one common share of the company and one common share purchase warrant entitling the holder to purchase an additional share at a price of seven cents for a period of 60 months.

The company intends to complete further tranches of the placement and will provide additional information as soon as it becomes available. The company anticipates utilizing the proceeds of the private placement to advance exploration and drilling efforts at the company’s McKenzie gold project, located in Red Lake, Ont., and the Dakouli 2 gold concession, located in Burkina Faso, West Africa.

In connection with closing of the initial tranche, the company has paid finders’ fees of $47,963 and issued 923,045 warrants to certain parties who have assisted the company by introducing subscribers to the placement.

The company also announces that it has reached an agreement with an arm’s-length creditor to settle outstanding indebtedness owing by the company in the amount of $50,000. In accordance with the terms of the settlement, the company has agreed to issue one million non-flow-through units, at a price of five cents per non-flow-through unit, to the creditor.

All securities issued in connection with the private placement, and the debt settlement, will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities law. Closing of further tranches of the private placement and completion of the debt settlement remain subject to approval of the TSX Venture Exchange.

About Nexus Gold Corp.

Nexus Gold is a Canadian-based gold development company with an extensive portfolio of nine exploration projects in West Africa and Canada. The company’s West African-based portfolio totals over 560 square kilometres (56,000-plus hectares) of land located on active gold belts and proven mineralized trends, while its 100-per-cent-owned Canadian projects include the McKenzie gold project in Red Lake, Ont., the New Pilot project, located in British Columbia’s historical Bridge River mining camp, and three prospective gold-copper projects (3,300 hectares) in the province of Newfoundland.

The company is focusing on the development of several core assets while seeking joint venture, earn-in and strategic partnerships for other projects in its growing portfolio.

We seek Safe Harbor.

https://www.nexusgoldcorp.com/