GoldMining Options The Almaden Property to NevGold for Total Consideration of $16.5 Million AND Makes Strategic Investment in NevGold
This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated
- On closing, NevGold (NAUFF) will issue 4,444,444 common shares of NevGold (NAUFF) (the "NevGold Shares") to GoldMining (GLDG) representing
C$3 million of value at a price equal toC$0.675 per share, representing approximately 10.6% of the outstanding NevGold Shares as of the date hereof; - GoldMining (GLDG) will subscribe for an additional
$1 million of NevGold Shares at$0.675 /share for 1,481,481 common shares on closing of the Option Agreement, and commits to a further lead order in a future financing by NevGold (NAUFF) completed byNovember 30, 2022 in an amount to the lesser ofC$1.25 million and 40% of the total gross proceeds raised by NevGold (NAUFF) in the Financing; - In order to exercise the option, NevGold (NAUFF) must make the following additional payments to GoldMining (GLDG)'s subsidiary in cash and/or NevGold Shares (based on a 30 day VWAP):
January 1, 2023 :C$1.5 million July 1, 2023 :C$1.5 million January 1, 2024 :C$3.0 million - To exercise the Option, NevGold (NAUFF) must also make qualifying expenditures on the Project totalling
C$2.25 million : $1.5 million on or beforeJune 1, 2023 $0.75 million on or beforeDecember 31, 2023 - Upon satisfying the total
C$9.0 million in cash and/or share payments and completingC$2.25 million in qualifying expenditures byJanuary 1, 2024 , NevGold (NAUFF) would own 100% of the Project - Additionally, NevGold (NAUFF) is required to make success-based contingent payments totalling up to
C$7.5 million to GoldMining (GLDG), payable in cash or shares at the election of NevGold (NAUFF): C$0.5 million on completion of a positive Preliminary Economic
AssessmentC$2.5 million on completion of a positive Preliminary Feasibility StudyC$4.5 million on completion of a positive Feasibility Study
Pursuant to the Option Agreement, on closing of the transaction, GoldMining (GLDG) will grant a subsidiary of NevGold (NAUFF) an option to acquire a 100% interest in the project for initial consideration for such grant of
In addition, concurrently with the closing of the option grant, GoldMining (GLDG) will make a strategic investment in NevGold (NAUFF) by subscribing for 1,481,481 NevGold Shares at a price of
Closing of the Option Agreement is expected to occur in
GoldMining Inc. (GLDG) is a public mineral exploration company focused on the acquisition and development of gold assets in the Americas. Through its disciplined acquisition strategy, GoldMining (GLDG) now controls a diversified portfolio of resource-stage gold and gold-copper projects in
This document contains certain forward-looking statements that reflect the current views and/or expectations, including statements regarding the expected closing of the Option Agreement, future payments under the Option Agreement, expectations regarding NevGold (NAUFF)'s proposed work programs and the expected benefits of the transactions under the Option Agreement. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the markets in which GoldMining (GLDG) operates. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including: delays to plans caused by restrictions and other future impacts of COVID-19 or any other inability of the Company to meet expected timelines for planned project activities; results of exploration programs may not confirm expectations; the inherent risks involved in the exploration and development of mineral properties, fluctuating metal prices, the ability of the parties to satisfy the conditions to closing of the Option Agreement as contemplated, the ability of NevGold (NAUFF) to exercise the option under the Option Agreement, unanticipated costs and expenses, risks related to government and environmental regulation, social, permitting and licensing matters, and uncertainties relating to the availability and costs of financing needed in the future. These risks, as well as others, including those set forth in GoldMiningꞌs Annual Information Form for the year ended
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SOURCE GoldMining Inc. (GLDG)