Vancouver, Canada – March 23, 2020 – Nexus Gold Corp. (“Nexus” or the “Company”) (TSX-V: NXS, OTCQB: NXXGF, FSE: N6E) is pleased to announce that it has completed an offering (the “Offering”) of 8,980,000 units (each, a “Unit”) by way of non-brokered private placement at a price of $0.05 per Unit for gross proceeds of $449,000. Each Unit consists of one common share of the Company, and one common share purchase warrant exercisable to acquire an additional share at a price of $0.07 for a period of sixty months.
No finders’ fees or commissions were paid in connection with completion of the Offering. All securities issued in connection with the Offering are subject to a four-month-and-one-day statutory hold period in accordance with applicable securities law. The Company anticipates utilizing the proceeds of the Offering to advance exploration and drilling efforts at the Company’s McKenzie Gold Project, located in Red Lake, Ontario, and for marketing and general working capital purposes.
The Company also announces that it has reached an agreement with Kruger Gold Corp. (“Kruger”) to amend the terms of a property option agreement which permits Kruger to acquire an interest in the Rakounga gold project (the “Project”), located in Burkina Faso, West Africa. Under the revised terms, Kruger can acquire a ninety-percent interest in the Project by completing a series of cash payments totaling $1,000,000, and incurring exploration expenditures of at least $1,250,000 in the development of the Project, over a five-year term. Following completion of these payments and expenditures, Kruger can acquire the remaining ten-percent interest in the Project by completing a one-time cash payment of $1,000,000.
Kruger continues to oversee operations at the Project and will assume responsibility for all existing royalty obligations in the event the right to acquire the Project is exercised.
About the Company
Nexus Gold is a Canadian-based gold development company with an extensive portfolio of exploration projects in West Africa and Canada. The Company’s West African-based portfolio totals five projects encompassing over 750-sq kms (75,000+ hectares) of land located on active gold belts and proven mineralized trends, while it’s 100%-owned Canadian projects include the McKenzie Gold Project in Red Lake, Ontario, the New Pilot Project, located in British Columbia’s historic Bridge River Mining Camp, and four prospective gold-copper projects (3,500-ha) in the Province of Newfoundland. The Company is focusing on the development of several core assets while seeking joint-venture, earn-in, and strategic partnerships for other projects in its growing portfolio.
For more information please visit nexus.gold.
On behalf of the Board of Directors of
NEXUS GOLD CORP.
President & CEO
Neither the 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 release. This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.