On November 6, 2024, Signal Gold Inc. and NexGold Mining Corp. completed oversubscribed and upsized concurrent financings for aggregate gross proceeds of $18.5 million.
The concurrent financings consisted of (i) 10,106,250 flow-through units of NexGold at a price of $0.80 per unit for gross proceeds of approximately $8 million; and (ii) 120,075,840 subscription receipts of Signal at a price of $0.08705 per subscription receipt for gross proceeds of approximately $10.5 million. Each flow-through unit of NexGold consisted of one flow-through common share of NexGold and one-half of one common share purchase warrant of NexGold issued on a non-flow-through basis, with each warrant entitling the holder thereof to purchase one non-flow-through common share of NexGold at a price of $1.05 for a period of 24 months. Each subscription receipt of Signal Gold will automatically convert into units of Signal Gold upon satisfaction or waiver of certain escrow release conditions, with each unit consisting of one common share of Signal Gold and one-half of one common share purchase warrant of Signal Gold, with each warrant entitling the holder thereof to purchase one common share of Signal Gold at a price of $0.11818 for a period of 24 months.
The concurrent financings were carried out in connection with a proposed plan of arrangement, pursuant to which NexGold will acquire all of the shares of Signal Gold to create a near-term gold developer, advancing NexGold’s Goliath Gold Complex Project in Northern Ontario and Signal Gold’s Goldboro Project in the Goldboro Gold District in Nova Scotia.
Cassels acted for Signal Gold.