/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, June 15, 2018 /CNW/ - NxGold Ltd. (the
"Company") (TSX-V:NXN) is pleased to announce it has closed
its previously announced non-brokered private placement to raise
gross proceeds of approximately C$4,270,525 (the "Offering"). The
Offering was upsized from C$1,000,000
on June 1, 2018 due to strong demand.
Red Cloud Klondike Strike Inc. and a number of others acted as
finders in connection with the Offering.
Pursuant to the Offering, the Company issued 23,725,143 units
(the "Units") at a price of C$0.18 per Unit. Each Unit is comprised of
one common share of the Company (a "Common Share") and one
common share purchase warrant (a "Warrant"), each Warrant
entitling the holder thereof to acquire one Common Share at a price
of C$0.27 until June 15, 2021.
The net proceeds from the Offering will primarily be used for
exploration at the Company's Mt. Roe Project in the Pilbara region
of Western Australia and general
working capital purposes.
Christopher McFadden, Chief
Executive Officer commented, "It is very pleasing to close the
private placement with such strong support from new and exisiting
shareholders. The funds raised will allow us to undertake
detailed work at our exciting project in the Pilbara region of
Western Australia over the next 12
months."
In connection with the Offering, the Company paid the finders a
cash fee up to 7.0% of the gross proceeds raised by the finders and
finders were granted common share purchase warrants (the "Finder
Warrants") entitling them to subscribe for that number of
Common Shares equal to up to 7.0% of the aggregate number of Units
sold by the finders. Each Finder Warrant is exercisable at a price
of C$0.18 until June 14, 2021.
The Units and any Finder Warrants, including all underlying
securities thereof, issued with respect to the Offering, will be
subject to a hold period under Canadian securities laws of four
months and one day from the closing of the Offering, expiring on
October 16, 2018.
This news release does not constitute an offer of securities for
sale in the United States. The
securities being offered have not been, nor will they be,
registered under the United States
Securities Act of 1933, as amended, and such securities may
not be offered or sold within the United
States absent U.S. registration or an applicable exemption
from U.S. registration requirements.
About NxGold
NxGold is a Vancouver-based exploration company. The
Company owns 80% of the Mt. Roe gold project located in the Pilbara
region of Western Australia. The Company has also entered into
an earn-in agreement with Meliadine Gold Ltd. to earn up to a 70%
interest in the Kuulu Project (formerly known as the Peter Lake
Gold Project) in Nunavut.
Neither TSX Venture Exchange nor its Regulations Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Statement Regarding "Forward-Looking"
Information
This news release contains "forward-looking information"
within the meaning of applicable Canadian securities
legislation. "Forward-looking information" includes, but is
not limited to, statements with respect to activities, events or
developments that the Company expects or anticipates will or may
occur in the future, including the use of proceeds of the
Offeringg. Generally, but not always, forward-looking information
and statements can be identified by the use of words such as
"plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", or "believes"
or the negative connotation thereof or variations of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative connotation thereof.
Such forward-looking information and statements are based on
numerous assumptions, including among others, that regulatory
approval to the Offering will be obtained, that general business
and economic conditions will not change in a material adverse
manner, that financing will be available if and when needed and on
reasonable terms, and that third party contractors, equipment and
supplies and governmental and other approvals required to conduct
the Company's planned exploration activities will be available on
reasonable terms and in a timely manner. Although the assumptions
made by the Company in providing forward-looking information or
making forward-looking statements are considered reasonable by
management at the time, there can be no assurance that such
assumptions will prove to be accurate.
Forward-looking information and statements also involve known
and unknown risks and uncertainties and other factors, which may
cause actual events or results in future periods to differ
materially from any projections of future events or results
expressed or implied by such forward-looking information or
statements, including, among others: negative operating cash flow
and dependence on third party financing, uncertainty of additional
financing, no known mineral reserves or resources, reliance on key
management and other personnel, potential downturns in economic
conditions, actual results of exploration activities being
different than anticipated, changes in exploration programs based
upon results, and risks generally associated with the mineral
exploration industry, environmental risks, changes in laws and
regulations, community relations and delays in obtaining
governmental or other approvals.
Although the Company has attempted to identify important
factors that could cause actual results to differ materially from
those contained in the forward-looking information or implied by
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on
forward-looking statements or information. The Company
undertakes no obligation to update or reissue forward-looking
information as a result of new information or events except as
required by applicable securities laws.
SOURCE NxGold Ltd.