Nexus Announces Strategic Plan for Independence Gold Project
Nexus Uranium Corp. (CSE: NEXU) (OTCQB: GIDMF) has announced strategic plans for its Independence Gold Project. The company will transfer its interest in the project to a wholly owned subsidiary, NewCo, which will then seek an initial public offering (IPO) and listing on a Canadian stock exchange. Nexus will remain a shareholder of NewCo but will not be involved in its management. This move aims to capitalize on strong gold prices and improved sentiment toward gold equities, while allowing Nexus to focus more on uranium exploration.
- Transfer of Independence Gold Project to NewCo aims to unlock unrecognized value.
- IPO and listing of NewCo expected to bring new funding.
- Nexus retains shareholder interest in NewCo without operational involvement.
- Positive market conditions for gold prices and equities support the strategic move.
- Focus shift to uranium exploration could enhance Nexus's core competencies.
- Potential risks associated with NewCo's IPO and listing.
- Nexus will not be involved in NewCo's operations, losing direct control over the project.
- Uncertainty about the IPO's success and market reception.
- Dependence on NewCo's performance for any financial gains from the Independence Gold Project.
Vancouver, British Columbia--(Newsfile Corp. - June 4, 2024) - Nexus Uranium Corp. (CSE: NEXU) (OTCQB: GIDMF) (FSE: 3H1) (the "Company" or "Nexus") is pleased to provide an update of the review of strategic alternatives for the Independence Gold Project previously announced on April 2, 2024. After reviewing all available alternatives, the Company now intends to transfer its interest in the Independence Gold Project to a wholly owned subsidiary of the Company ("NewCo") which will then seek to complete an initial public offering ("IPO") and a concurrent listing of its shares on a Canadian stock exchange (the "Listing") Following the IPO, the Company will be a shareholder of NewCo but will not be involved in its operations or management. Further details on the proposed IPO and Listing will be provided shortly.
"With the continued strength of the gold price and improved sentiment for gold equities, we are moving forward with unlocking the unrecognized value for our Independence Gold Project" commented Jeremy Poirier, CEO of Nexus. "The creation of a new entity holding our Independence Project in Nevada will allow the asset to advance independently of Nexus with new funding. It will also allow Nexus to strengthen its focus on uranium exploration."
About the Independence Project
The Independence project is located in one of the premiere gold mining jurisdictions, the Battle Mountain mining district of Northern Nevada, and is located entirely within Nevada Gold Mines' Phoenix Mine permitted Plan of Operations. Nevada Gold Mines is a joint venture between Barrick Gold (
The Independence project hosts an M&I (measured and indicated) resource of 334,300 ounces of gold (28M tonnes at 0.41 g/t gold) and an inferred resource of 847,000 ounces (9M tonnes at 3.22 g/t gold) of gold with a substantial silver credit. A 2022 Preliminary Economic Assessment (PEA) outlined a low-cost heap leach operation focusing on the near-surface resource with total production of 195,443 ounces of gold at an all-in sustaining cost of
The economic evaluation of the PEA utilized a US
Table 1: Gold Price Sensitivity
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Source: 2022 PEA Technical Report
Figure 1: Independence Gold Project Map
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About Nexus Uranium Corp.
Nexus Uranium Corp. is a multi-commodity development company focused on advancing the Cree East uranium project in the Athabasca Basin and the Wray Mesa uranium-vanadium project in Utah in addition to its precious metals portfolio that includes the development-stage Independence mine located adjacent to Nevada Gold Mine's Phoenix-Fortitude mine in Nevada, the Napoleon gold project in British Columbia, and a package of gold claims in the Yukon. The Cree East project is one of the largest projects within the Athabasca Basin of Saskatchewan spanning 57,752 hectares (142,708 acres) and has seen over
Nexus Uranium cautions investors the preliminary economic assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. The Company further cautions investors Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability and further cautions investors the quantity and grade of the reported inferred Mineral Resources are uncertain in nature and there has been insufficient exploration to define these inferred Mineral Resources as indicated Mineral Resources.
The Company cautions investors it has yet to verify the historical data and further cautions investors grab samples are selective by nature and are unlikely to represent average grades of sampling on the entire property.
The technical content of this news release has been reviewed and approved by Warren D. Robb, P.Geo. (BC), a Director and VP Exploration of Nexus Uranium Corp. and a Qualified Person under National Instrument 43-101.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Jeremy Poirier
Chief Executive Officer
info@nexusuranium.com
This news release includes certain statements and information that may constitute "forward-looking information" within the meaning of applicable Canadian securities laws. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". All statements in this news release, other than statements of historical facts, including statements regarding future estimates, plans, objectives, timing, assumptions or expectations of future performance are forward-looking statements and contain forward-looking information, including, but not limited to: transfer of the Independence Gold Project to NewCo and completion of an IPO and Listing by NewCo.
Forward-looking statements are based on certain material assumptions and analysis made by the Company and the opinions and estimates of management as of the date of this news release, including, but not limited to: the assumption that NewCo will be successful in finding suitable investors for an IPO and that NewCo will meet the listing requirements of a Canadian stock exchange.
These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information, including, but not limited to: the risk that NewCo will not be successful in finding suitable investors or is not able to satisfy the listing requirements of a Canadian stock exchange as well asnherent risks associated with the mining industry and the results of exploration activities and development of mineral properties, stock market volatility and capital market fluctuations, general market and industry conditions, as well as those risk factors discussed in the Company's most recently filed management's discussion & analysis.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or 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 such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws.
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