Signal Gold Exercises Option and Upsizes Concurrent Financing, Confirms Conversion of Subscription Receipts and Updated Credit Facility Restructuring Terms
Signal Gold has exercised its upsize option and closed Tranche 2 of its oversubscribed financing, issuing 3,044,228 subscription receipts at $0.08705 each, raising $265,000.05. The total Hard Dollar Financing reached $10.7M through 123.1M subscription receipts. The subscription receipts have converted into units comprising one common share and half a warrant, with each full warrant exercisable at $0.11818 for 24 months.
The company has finalized restructuring terms with Nebari, including repayment of Signal Gold's US$20.8M and NexGold's US$6.2M facilities. A new US$12M facility will be implemented with an 11.4% interest rate and 30-month term. Additionally, Nebari will receive a 0.6% NSR on the Goldboro Project for US$6M, with buy-back options, and participate in a US$4M equity placement at C$0.70 per share.
Signal Gold ha esercitato la sua opzione di aumento e ha chiuso la Tranche 2 del suo finanziamento sovrascritto, emettendo 3.044.228 ricevute di sottoscrizione a $0,08705 ciascuna, raccogliendo $265.000,05. Il totale del finanziamento in Dollari Duri ha raggiunto i $10,7M attraverso 123,1M di ricevute di sottoscrizione. Le ricevute di sottoscrizione sono state convertite in unità costituite da un'azione comune e metà di un warrant, con ciascun warrant completo esercitabile a $0,11818 per 24 mesi.
L'azienda ha finalizzato i termini di ristrutturazione con Nebari, inclusa la restituzione delle strutture di Signal Gold per US$20,8M e NexGold per US$6,2M. Una nuova struttura da US$12M sarà implementata con un tasso d'interesse dell'11,4% e una durata di 30 mesi. Inoltre, Nebari riceverà un NSR dello 0,6% sul Progetto Goldboro per US$6M, con opzioni di riacquisto, e parteciperà a un collocamento azionario da US$4M a C$0,70 per azione.
Signal Gold ha ejercido su opción de aumento y ha cerrado la Tranche 2 de su financiación sobreescrita, emitiendo 3.044.228 recibos de suscripción a $0,08705 cada uno, recaudando $265.000,05. La financiación total en Dólares Duros alcanzó los $10,7M a través de 123,1M de recibos de suscripción. Los recibos de suscripción se han convertido en unidades que comprenden una acción ordinaria y medio warrant, con cada warrant completo ejecutable a $0,11818 durante 24 meses.
La empresa ha finalizado los términos de reestructuración con Nebari, incluyendo el reembolso de las instalaciones de Signal Gold de US$20,8M y de NexGold de US$6,2M. Se implementará una nueva instalación de US$12M con una tasa de interés del 11,4% y un plazo de 30 meses. Además, Nebari recibirá un NSR del 0,6% en el Proyecto Goldboro por US$6M, con opciones de recompra, y participará en una colocación de acciones de US$4M a C$0,70 por acción.
신호 금은 증액 옵션을 행사하고 초과 구독된 자금 조달의 2차 트랜치를 마감하여 각각 $0.08705에 3,044,228개의 구독 영수증을 발행하고 $265,000.05를 모금했습니다. 총 하드 달러 자금 조달은 123.1M 개의 구독 영수증을 통해 $10.7M에 달했습니다. 구독 영수증은 하나의 보통주와 절반의 워런트로 구성된 단위로 전환되었으며, 각 전체 워런트는 24개월 동안 $0.11818에 행사할 수 있습니다.
회사는 Nebari와 재구성 조건을 최종화하였으며, Signal Gold의 US$20.8M 및 NexGold의 US$6.2M 시설에 대한 상환을 포함합니다. 새로운 US$12M 시설이 이자율 11.4%와 30개월의 기간으로 시행될 것입니다. 또한, Nebari는 US$6M에 대해 Goldboro 프로젝트에 대한 0.6%의 NSR을 받게 되며, 재매입 옵션과 함께 US$4M의 주식 방출에 C$0.70의 주식으로 참여할 것입니다.
Signal Gold a exercé son option d'augmentation et a clôturé la Tranche 2 de son financement sursouscrit, émettant 3 044 228 reçus de souscription à 0,08705 $ chacun, levant 265 000,05 $. Le financement total en dollars durs a atteint 10,7 millions de dollars par l'intermédiaire de 123,1 millions de reçus de souscription. Les reçus de souscription ont été convertis en unités comprenant une action ordinaire et la moitié d'un bon de souscription, chaque bon complet pouvant être exercé à 0,11818 $ pendant 24 mois.
L'entreprise a finalisé les conditions de restructuration avec Nebari, y compris le remboursement des prêts de Signal Gold de 20,8 millions de dollars US et de NexGold de 6,2 millions de dollars US. Une nouvelle facilité de 12 millions de dollars US sera mise en œuvre avec un taux d'intérêt de 11,4 % et une durée de 30 mois. De plus, Nebari recevra un NSR de 0,6 % sur le projet Goldboro pour 6 millions de dollars US, avec des options de rachat et participera à un placement d'équité de 4 millions de dollars US à 0,70 $ CA par action.
Signal Gold hat seine Erhöhungsoption wahrgenommen und die Tranche 2 seiner überzeichneten Finanzierung abgeschlossen, indem sie 3.044.228 Bezugsrechte zu je $0,08705 ausgegeben hat und damit $265.000,05 aufgebracht hat. Die Gesamtfinanzierung in Hartwährung erreichte $10,7M über 123,1M Bezugsrechte. Die Bezugsrechte wurden in Einheiten umgewandelt, die aus einer Stammaktie und einem halben Warrant bestehen, wobei jeder volle Warrant innerhalb von 24 Monaten zu $0,11818 ausgeübt werden kann.
Das Unternehmen hat die Umstrukturierungsbedingungen mit Nebari abgeschlossen, einschließlich der Rückzahlung der Einrichtungen von Signal Gold in Höhe von US$20,8M und NexGold in Höhe von US$6,2M. Eine neue US$12M Einrichtung wird mit einem Zinssatz von 11,4% und einer Laufzeit von 30 Monaten umgesetzt. Darüber hinaus erhält Nebari einen NSR von 0,6% am Goldboro-Projekt für US$6M, mit Rückkaufoptionen, und nimmt an einer Eigenkapitalplatzierung über US$4M zu C$0,70 pro Aktie teil.
- Successful completion of $10.7M financing through subscription receipts
- Debt restructuring reduces total debt from US$27M to US$12M
- New credit facility secured with 30-month term
- US$4M additional equity investment from Nebari
- 11.4% interest rate on new credit facility
- Potential share dilution from warrant exercises
- New 0.6% NSR royalty on Goldboro Project (potentially increasing to 2.0%)
- Additional share dilution from US$4M equity placement
Not for distribution to U.S. newswire services or dissemination in the United States
TORONTO, ON / ACCESSWIRE / December 11, 2024 / NexGold Mining Corp. ("NexGold") (TSXV:NEXG)(OTCQX:NXGCF) and Signal Gold Inc. ("Signal Gold") (TSX:SGNL)(OTCQB:SGNLF) are pleased to announce that, further to the companies' joint news releases dated October 10, 2024, October 23, 2024 and November 6, 2024, Signal Gold has exercised its upsize option and on December 10, 2024 closed an additional tranche ("Tranche 2") of its previously announced oversubscribed concurrent financing of subscription receipts ("Hard Dollar Financing"). Tranche 2 consisted of an issuance of an aggregate of 3,044,228 subscription receipts ("Subscription Receipts") at a price of
In addition, Signal Gold and NexGold are pleased to announce that today, the necessary conditions were satisfied and the Subscription Receipts automatically converted into units of Signal Gold ("NFT Units"). Each NFT Unit is comprised of one common share of Signal Gold (a "NFT Share") and one-half of one common share purchase warrant of Signal Gold (each whole warrant, a "NFT Unit Warrant"). Each NFT Unit Warrant entitles the holder thereof to purchase one NFT Share at a price of
The net proceeds of the Hard Dollar Financing are expected to be used by the combined company to fund the retirement of certain debt, the exploration and advancement of the Goliath and Goldboro Projects and for working capital and general corporate purposes.
In connection with the Hard Dollar Financing, Signal Gold paid finder's compensation to certain eligible finders comprised of cash payments and the issuance of an aggregate of 2,227,395 non-transferable finder's warrants ("Finder's Warrants") in respect of subscribers introduced to Signal Gold by such finders. The Finder's Warrants are exercisable to acquire one NFT Share at a price of
The securities offered in the Hard Dollar Financing have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Debt Restructuring
Further to the Companies' news release dated October 10, 2024, NexGold has agreed to the final terms with Nebari to complete a restructuring of NexGold and Signal Gold's respective debt facilities, which will significantly reduce the debt profile of the combined entity going forward, with the definitive documentation to be released from escrow immediately following the effectiveness of the Transaction. Pursuant to the transactions with Nebari, Signal Gold's outstanding credit facility of approximately US
In addition, the transactions contemplate the granting of a
The proposed new loan and royalty, together with a proposed US
Please refer to the October 10, 2024, October 23, 2024, and November 6, 2024 news releases for additional details regarding the Transaction and proposed debt restructuring to be carried out in connection with the Transaction.
About NexGold Mining Corp.
NexGold Mining Corp. is a gold-focused company with assets in Canada and Alaska. NexGold's Goliath Project (which includes the Goliath, Goldlund and Miller deposits) is located in Northwestern Ontario. The deposits benefit substantially from excellent access to the Trans-Canada Highway, related power and rail infrastructure and close proximity to several communities including Dryden, Ontario. For information on the Goliath Project, refer to the technical report, prepared in accordance with NI 43-101, entitled ‘Goliath Gold Complex - NI 43-101 Technical Report and Prefeasibility Study' and dated March 27, 2023, with an effective date of February 22, 2023, led by independent consultants Ausenco Engineering Canada Inc. The technical report is available on SEDAR+ at www.sedarplus.ca, on the OTCQX at www.otcmarkets.com and on NexGold's website at www.nexgold.com.
NexGold also owns several other projects throughout Canada, including the Weebigee-Sandy Lake Gold Project JV, and grassroots gold exploration property Gold Rock. In addition, NexGold holds a
About Signal Gold Inc.
Signal Gold is advancing the Goldboro Project in Nova Scotia, a significant growth project subject to a positive Feasibility Study which demonstrates an approximately 11-year open pit life of mine with average gold production of 100,000 ounces per annum and an average diluted grade of 2.26 grams per tonne gold. For further details, refer to the technical report entitled ‘NI 43-101 Technical Report and Feasibility Study for the Goldboro Gold Project, Eastern Goldfields District, Nova Scotia' dated January 11, 2022, with an effective date of December 16, 2021. The technical report is available on SEDAR+ at www.sedarplus.ca, on the OTCQX at www.otcmarkets.com and on Signal Gold's website at www.signalgold.com. On August 3, 2022, the Goldboro Project received its environmental assessment approval from the Nova Scotia Minister of Environment and Climate Change, a significant regulatory milestone, and Signal Gold has now submitted all key permits including the Industrial Approval, Fisheries Act Authorization and Schedule 2 Amendment, and the Mining and Crown Land Leases. The Goldboro Project has significant potential for further Mineral Resource expansion, particularly towards the west along strike and at depth, and Signal Gold has consolidated 28,525 hectares (~285 km2) of prospective exploration land in the Goldboro Gold District. For more information on Signal Gold, please visit Signal Gold's website at www.signalgold.com.
Technical Disclosure and Qualified Persons
Adam Larsen, B.Sc., P. Geo., Director of Exploration of NexGold,is a "qualified person" within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") and has reviewed and approved the scientific and technical information in this news release regarding the Goliath Project on behalf of NexGold.
Kevin Bullock, P. Eng., President, CEO and Director of Signal Gold,is a "qualified person" within the meaning of NI 43-101 and has reviewed and approved the scientific and technical information in this news release regarding the Goldboro Project on behalf of Signal Gold.
Contact:
NexGold Mining Corp.
Morgan Lekstrom | Orin Baranowsky |
Toll-free: +1-855-664-4654
ir@nexgold.com
Signal Gold Inc.
Kevin Bullock | Robert Dufour |
Cautionary Note Regarding Forward-Looking Information
Certain information set forth in this news release contains "forward‐looking statements" and "forward‐looking information" within the meaning of applicable Canadian securities legislation and applicable United States securities laws (referred to herein as forward‐looking statements). Except for statements of historical fact, certain information contained herein constitutes forward‐looking statements which includes, but is not limited to, statements with respect to: completion of the proposed Transaction, including receipt of all necessary court, shareholder and regulatory approvals, and the timing thereof; and the combined company's intended use of the net proceeds from the Hard Dollar Financing.
Forward-looking statements are often identified by the use of words such as "may", "will", "could", "would", "anticipate", "believe", "expect", "intend", "potential", "estimate", "budget", "scheduled", "plans", "planned", "forecasts", "goals" and similar expressions. Forward-looking statements are based on a number of factors and assumptions made by management and considered reasonable at the time such information is provided. Assumptions and factors include: the successful completion of the Transaction (including receipt of all regulatory approvals, shareholder and third-party consents) and the debt restructuring documents being released from escrow; the ability of the combined company to complete its planned exploration programs; the absence of adverse conditions at mineral properties; and the price of gold remaining at levels that render mineral properties economic. Forward‐looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward‐looking statements. These risks and uncertainties include, but are not limited to: risks related to the Transaction, including, but not limited to, the ability to obtain necessary approvals in respect of the Transaction and to consummate the Transaction and the debt restructuring; general business, economic and competitive uncertainties; delays in obtaining governmental approvals or financing; and management's ability to anticipate and manage the foregoing factors and risks. Although the companies have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Readers are advised to study and consider risk factors disclosed in NexGold's and Signal Gold's annual information forms for the year ended December 31, 2023, available on www.sedarplus.ca.
There can be no assurance that forward‐looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The companies undertake no obligation to update forward‐looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The forward-looking statements contained herein are presented for the purposes of assisting investors in understanding the companies' plans, objectives and goals, including with respect to the Transaction, and may not be appropriate for other purposes. Forward-looking statements are not guarantees of future performance and the reader is cautioned not to place undue reliance on forward‐looking statements. This news release also contains or references certain market, industry and peer group data, which is based upon information from independent industry publications, market research, analyst reports, surveys, continuous disclosure filings and other publicly available sources. Although NexGold and Signal Gold believe these sources to be generally reliable, such information is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process and other inherent limitations and uncertainties. NexGold and Signal Gold have not independently verified any of the data from third party sources referred to in this news release and accordingly, the accuracy and completeness of such data is not guaranteed.
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 news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE: Signal Gold Inc.
View the original press release on accesswire.com
FAQ
How much did Signal Gold (SGNLF) raise in its Hard Dollar Financing?
What are the terms of Signal Gold's new credit facility with Nebari?
What is the exercise price and term for the new warrants issued to Nebari?
What are the terms of the NSR royalty granted to Nebari on the Goldboro Project?
What is the price per share for Nebari's US$4M equity placement in Signal Gold?
