NuLegacy Gold to raise $5.6M for exploration in Nevada

• NuLegacy Gold (TSXV:NUG) is set to raise approximately C$5.6 million in a non-brokered private placement
• The company will issue 75,000,000 units, each at a price of 7.5 cents
• The units will consist of one common share and one common share purchase warrant
• Proceeds from the placement will be used to undertake an expanded exploration program at the company’s Red Hill Property in Nevada
• NuLegacy Gold (NUG) is currently down 5.26 per cent, with shares trading at 9 cents and a market cap of $36.65 million

NuLegacy Gold (TSXV:NUG) is set to raise around C$5.6 million in a non-brokered private placement.

Headquartered in Vancouver, the company is currently focused on confirming high-grade gold deposits within its wholly owned, 108 square kilometre Red Hill Property in Nevada, which hosts the recently identified Rift Anticline target.

Under the terms of the placement, NuLegacy will issue 75,000,000 units at an individual price of 7.5 cents. Each of these units will consist of one common share, as well as half of one transferable common share purchase warrant.

Each warrant will entitle the holder to purchase an additional common share at a price of 12.5 cents, with an exercise period of 24 months from the date of closing.

The proceeds from the placement will be used to undertake an expanded exploration program at NuLegacy’s Rift Anticline target, including 14 to 16 planned core holes. A portion of the funds may also be used for general corporate and working capital purposes.

Albert Matter, CEO of NuLegacy Gold, said that previous assessments have indicated a promising potential for the Rift Anticline target.

“Our recent winter 2019 drill program and subsequent analysis and geological remodeling strongly support our analysis that the Rift Anticline target bears significant structural and stratigraphic similarities and connectors to Barrick Gold’s Goldrush Carlin-style gold systems approximately 8 kilometres to the northwest.

“We are utilizing the improved gold market conditions to strengthen our treasury,” he said. 

Albert also noted that the additional funds will allow the company to expand its CSAMT and gravity surveys over the Rift Anticline this summer. 

This is expected to further advance NuLegacy’s interpretation and site targeting for a larger and deeper drill program later in the year.

NuLegacy Gold (NUG) is currently down 5.26 per cent, with shares trading for 9 cents at 1:01pm EDT.