Contracts core rig for Avocado follow-up drilling
RENO, NEVADA–(Marketwired – Oct. 17, 2016) – NuLegacy Gold Corporation (TSX VENTURE:NUG)(OTCQX:NULGF) is pleased to report it has closed an initial tranche of 10,032,590 units for gross proceeds of C$4,514,666 of the 20,000,000-unit non-brokered C$0.45 per unit financing announced October 4, 2016. The long-established Tocqueville Gold Fund participated as to 9,020,590 million units to increase its total shareholdings to 28,556,090 shares and attain its objective of 9.9% of the common shares of the Company.
Each Unit consists of one common share and one full share purchase warrant, with each warrant entitling the holder to purchase one additional common share for a period, subject to acceleration, of 18 months at an exercise price of $0.65.
In the mean while your Chairman, Albert Matter, has been in Elko Nevada, and has negotiated and contracted with Boart Longyear, Nevada’s premier drilling company, to provide a very powerful core rig and best crew to drill a 2,500+ foot core hole as a step out from hole AV-2, the Avocado discovery hole. Boart has assured us that despite the late start they will complete the hole before the onset of unfavorable winter conditions. The stratigraphic information from this hole, together with the data from the initial Avocado holes and the recent geophysical surveys will provide the guidance for the selection of the next 4 to 6 reverse circulation holes to be drilled into the Avocado deposit in the spring of 2017.
The net proceeds of this financing will be used to fund the Company’s expanded gold exploration programs in Nevada (Red Hills/Iceberg) and for general corporate purposes. Finder’s fees of 6% cash and 6% finder’s warrants were or will be paid and issued on approximately 200,000 units to various finders. All securities issued and issuable in connection with this initial tranche are subject to a four-month hold period expiring February 18, 2017. The financing remains subject to the potential exercise of equity participation rights by certain existing shareholders as previously disclosed on October 4, 2016.
About NuLegacy: The Iceberg gold deposit has an established exploration target of 90-110 million tonnes of 0.9 to 1.1 grams of gold per tonnei. It is located in the Cortez gold trend of Nevada, adjacentii to three of Barrick’s multi-million ounces Carlin-type gold deposits that are amongst its lowest cost and politically safest gold assets.iii
|i These figures are conceptual in nature and derived from a compilation of 149 historic and 34 NuLegacy drill holes in and around the Iceberg deposit. To date, there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.|
|ii The similarity and close proximity of these deposits to the Iceberg is not necessarily indicative of the gold mineralization in the Iceberg deposit.|
|iii As extracted from Barrick’s Q4-2013 and Q1-2014 reports.|
On Behalf Of NuLegacy Gold Corporation
James E Anderson, Chief Executive Officer
Dr. Roger Steininger, NuLegacy’s CGO is a Certified Professional Geologist (CPG 7417) and the qualified person as defined by NI 43-101,Standards of Disclosure for Mineral Projects responsible for preparing and reviewing the scientific and technical information contained in this news release.
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 news release.
This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. There are no known resources or reserves in the Iceberg deposit and the proposed exploration programs are exploratory searches for commercial bodies of ore. In addition, the presence of gold deposits on properties adjacent or in close proximity to the Iceberg Deposit is not necessarily indicative of the gold mineralization on the Iceberg Deposit. All of the forward-looking statements made in this news release are qualified by these cautionary statements and those in our continuous disclosure filings available on SEDAR at www.sedar.com including our annual management’s discussion and analysis dated July 28, 2016 for the year ended March 31, 2016. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation.
THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER TO SELL SECURITIES AND THE COMPANY IS NOT SOLICITING AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.