VANCOUVER, BC, June 18, 2020 /CNW/ - NxGold Ltd.
("NxGold" or the "Company") (TSXV: NXN) is pleased to
announce that it has received approval from the TSX Venture
Exchange (the "TSXV") for the previously announced option
agreement with Mega Uranium Ltd. ("Mega") (TSX: MGA) to
acquire a 100% interest in the Ben Lomond and Georgetown uranium projects in Australia (the "Option
Agreement").
In accordance with the Option Agreement, the Company issued
900,000 common shares in the capital of the Company (each, a
"Common Share") and 900,000 Common Share purchase warrants
(each, a "Warrant") to Mega. Each Warrant entitles the
holder thereof to purchase one Common Share at an exercise price of
$0.30 per Common Share, for a period
of 24 months, subject to an exercise restriction whereby any
exercise of the Warrants that would result in Mega beneficially
owning or having control or direction over ten percent (10%) or
greater of the total issued and outstanding voting securities of
the Company, immediately after giving effect to such exercise, is
prohibited. In addition, the Company paid Mega a cash consideration
in the amount of $180,000. For
further information on the Option Agreement, please refer to the
Company's news release dated May 14,
2020.
All securities issued in connection with the Option Agreement
are subject to a restricted period of four months and one day from
the date of issuance.
Philip Williams President and CEO
commented "We are excited to take this first step into the uranium
space as the commodity price has begun to recover. We commend our
peers in the space who have persevered the bear market of the past
decade and are excited to bring a new story and enthusiasm to the
market. Anchored by the Ben Lomond project, a high grade, low
capex, near term development opportunity, we look forward to
becoming an active player in consolidating orphaned uranium
projects in Australia and around
the globe. We are particularly pleased with adding Mega Uranium as
a shareholder with is long history and success in the space."
Options Issued
In addition, the Company has granted an aggregate of 850,000
options (the "Options") to purchase Common Shares,
exercisable at a price of $0.30 per Common Share for a period of
five years from the date of issuance, to certain directors,
officers and consultants of the Company. The Common Shares issuable
upon exercise of the Options are subject to a four month and one
day statutory hold period from the original date of grant.
About NxGold
NxGold is a Vancouver-based
exploration company. The Company has recently entered into an
option agreement with Mega Uranium Ltd. (TSX: MGA) to
acquire a 100% interest in the Ben Lomond and Georgetown uranium projects in Australia and owns 80% of the Mt. Roe
gold project located in the Pilbara region of Western
Australia. The Company has also entered into an earn-in
agreement with Meliadine Gold Ltd. to earn up to a 70% interest in
the Kuulu Project (formerly known as the Peter Lake Gold Project)
in Nunavut.
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this
release.
Cautionary Statement Regarding "Forward-Looking"
Information
This news release contains "forward-looking information"
within the meaning of applicable Canadian securities legislation.
"Forward-looking information" includes, but is not limited to,
statements with respect to activities, events or developments that
the Company expects or anticipates will or may occur in the future
including whether the proposed acquisition will be completed.
Generally, but not always, forward-looking information and
statements can be identified by the use of words such as "plans",
"expects", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates", or "believes" or the
negative connotation thereof or variations of such words and
phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative connotation thereof.
Such forward-looking information and statements are based on
numerous assumptions, including among others, that general business
and economic conditions will not change in a material adverse
manner, that financing will be available if and when needed and on
reasonable terms, and that third party contractors, equipment and
supplies and governmental and other approvals required to conduct
the Company's planned exploration activities will be available on
reasonable terms and in a timely manner. Although the assumptions
made by the Company in providing forward-looking information or
making forward-looking statements are considered reasonable by
management at the time, there can be no assurance that such
assumptions will prove to be accurate.
Forward-looking information and statements also involve known
and unknown risks and uncertainties and other factors, which may
cause actual events or results in future periods to differ
materially from any projections of future events or results
expressed or implied by such forward-looking information or
statements, including, among others: negative operating cash flow
and dependence on third party financing, uncertainty of additional
financing, no known mineral reserves or resources, reliance on key
management and other personnel, potential downturns in economic
conditions, actual results of exploration activities being
different than anticipated, changes in exploration programs based
upon results, and risks generally associated with the mineral
exploration industry, environmental risks, changes in laws and
regulations, community relations and delays in obtaining
governmental or other approvals.
Although the Company has attempted to identify important
factors that could cause actual results to differ materially from
those contained in the forward-looking information or implied by
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 forward-looking information and statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated, estimated or
intended. Accordingly, readers should not place undue reliance on
forward-looking statements or information. The Company undertakes
no obligation to update or reissue forward-looking information as a
result of new information or events except as required by
applicable securities laws.
SOURCE NxGold Ltd.
