VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 13, 2017) - NxGold Ltd. ("NxGold Ltd." or the "Company"), (TSX VENTURE:NXN) is pleased to announce that, further to its news release dated December 13, 2016 announcing the completion of an offering of 19,840,600 units (the "Offering") raising gross proceeds of approximately $4.9 million, it has closed an additional and final tranche of the Offering consisting of 2,116,000 units for aggregate gross proceeds of approximately $0.5 million. This additional tranche was completed to respond to excess demand for the Offering.
As with the Offering, each unit issuable pursuant to this final tranche, consists of one common share of the Company (each, a "Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant") and was issued at a price of $0.25. Each Warrant is exercisable to purchase one additional Share at a price of $0.50 for a period of 36 months commencing on closing (the "Expiry Date"). If, at any time after May 14, 2017, the closing price of the Shares on the principal market on which the Shares trade is equal to or greater than $0.75 for a period of 20 consecutive trading days, the Company may accelerate the expiry of the Warrants, in which event the Expiry Date shall be the date (the "Accelerated Expiry Date") which is 30 days following the dissemination of a news release by the Company announcing the Accelerated Expiry Date.
The Company has not and will not pay any compensation in connection with this final tranche of the Offering. All securities to be issued pursuant to this final tranche of the Offering will be subject to a hold period expiring May 14, 2017.
The net proceeds will be combined with those of the Offering and used to satisfy the Company's short term obligations under its previously announced earn-in agreement with Meliadine Gold Ltd., pursuant to which the Company has an exclusive option to earn up to a 70% interest in the Peter Lake Property, and for working capital purposes.
About NxGold
NxGold is a Vancouver-based exploration company. NxGold has entered into an earn-in agreement with Meliadine Gold Ltd. to earn up to a 70% interest in the Peter Lake Gold Property. The Peter Lake Property is located approximately 40 km northwest of Rankin Inlet, Nunavut. The Property covers 4,174 hectares immediately along trend from Agnico Eagle's advanced Meliadine Gold project (with applications pending to increase the size of the Property to 10,670 hectares). The earn-in agreement is subject to final acceptance of the TSX Venture Exchange, conditional acceptance having been obtained.
