Funds will be used to advance gold projects in West Africa
Nexus Gold Corp (OTCBB:NXXGF)
VANCOUVER, BC, CANADA, May 24, 2018 /EINPresswire.com/ — • Placement fully subscribed
• Due to demand, Company announces follow-on private placement
• Sandstorm Gold Ltd (TSX: SSL) takes 17.3% ownership stake in Nexus
Vancouver, Canada – May 24, 2018 – Nexus Gold Corp. (“Nexus” or the “Company”) (TSX-V: NXS, OTC: NXXGF, FSE: N6E) is pleased to announce that it has closed its non-brokered private placement (the “Private Placement”) of 20,027,123 units (each, a “Unit”), at a price of $0.15 per Unit, for gross proceeds of $3,004,068. Each Unit consists of one common share of the Company, and one-half-of-one common share purchase warrant (each whole warrant, a “Warrant”). Each whole Warrant is exercisable to acquire one additional common share of the Company at a price of $0.25 per share for a period of twelve months.
The Private Placement was fully-subscribed, and due to strong demand, the Company intends to complete a further offering (the “Follow-On Private Placement”) of up to 6,000,000 units (each, a “Follow-On Unit”), at a price of $0.25 per Follow-On Unit, for gross proceeds of up to $1,500,000. Each Follow-On Unit will consist of one common share of the Company, and one common share purchase warrant (each, a “Follow-On Warrant”). Each Follow-On Warrant will be exercisable to acquire one additional common share of the Company at a price of $0.35 per share for a period of twelve months from the date of issue. Completion of the Follow-On Private Placement remains subject to the approval of the TSX Venture Exchange.
In connection with completion of the Private Placement, the Company has paid cash commissions of $113,954.46, and issued 759,696 share purchase warrants (each, a “Finders’ Warrant”) to certain persons who have introduced subscribers to the Company. Each Finders’ Warrant is exercisable to acquire an additional common share of the Company on the same terms as the Warrants comprising the Units. All securities issued in connection with the Private Placement are subject to a four-month-and-one-day statutory hold period.
Pursuant to National Instrument 62-103 – The Early Warning System and Related Take Over Bid and Insider Reporting Issues, Sandstorm Gold Ltd. (TSX: SSL) (“Sandstorm”) acquired an aggregate of 6,000,000 common shares of Nexus and 3,000,000 Warrants through the Private Placement.
With the acquisition Sandstorm now holds an approximately 17.3% of the outstanding common shares. Sandstorm is only entitled to exercise, from time to time, such number of Warrants held by it such that, after the applicable exercise, the number of common shares of Nexus then owned by Sandstorm and its affiliates shall not exceed 19.99% of the then issued and outstanding shares.
The acquisition by Sandstorm was effected for investment purposes. Sandstorm may from time to time acquire additional securities of Nexus, dispose of some or all of the existing or additional securities it holds or will hold, or may continue to hold its current position. The early warning report, as required under National Instrument 62-103, contains additional information with respect to the foregoing matters and will be filed by Sandstorm on Nexus’ SEDAR profile at www.sedar.com. In connection with completion of the Private Placement, the Company has agreed to grant to Sandstorm a 1.0% net smelter returns royalty on production from the Company’s Bouboulou, Niangouela and Rakounga concessions.
About the Company
Nexus Gold is a Vancouver-based gold exploration and development company operating primarily in Burkina Faso, West Africa. The company is currently concentrating its efforts on establishing a compliant resource oat one or more of it’s three current projects. The 38-square km Bouboulou project comprises no less than five established gold zones contained within three separate 5km gold trends. The adjacent 250-square km Rakounga gold concession extends the Bouboulou gold trends and currently contains three drill tested zones of mineralization. The Niangouela gold concession is a 178-square km project featuring high-grade gold occurring in and around a primary quartz vein and associated shear zone approximately one km in length.
On behalf of the Board of Directors of
NEXUS GOLD CORP.
Chief Executive Officer
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.
Nexus Gold Corp
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Source: EIN Presswire