NuLegacy Gold Corp (TSX-V:NUG) told investors it has commenced a private placement for gross proceeds of up to C$1 million, which will allow it to fund the maintenance and advancement of its 100%-owned Red Hill gold property in Nevada through to December 2025.
The offering will be for 100 million units at C$0.01 per unit, with each unit consisting of one share and one transferable to purchase an additional share at a nominal exercise price of C$0.05 per share.
The company said that Crescat Capital along with NuLegacy directors and advisors have provided a minimum lead commitment of C$550,000 to purchase 55 million units of the total 100 million unit offering.
Assuming 100% of the offering, C$399,000 will be used on mineral properties maintenance costs, C$300,000 on general and administrative, C$75,000 issue expenses, C$65,000 on related party expenses and C$161,200 is unallocated working capital.
NuLegacy highlighted that since December 2023, its team of geologists have conducted an in-depth analysis of the Red Hill database.
This review has validated four previously identified but untested targets in the Mid and South rifts and introduced two new targets.
One of these new targets is located west of the previous exploration zone, identified through the meticulous methods of Robert Leonardson, a renowned Carlin-type gold system geologist.
This target is geologically similar to the productive Cambrian dolomite/Eureka gold systems south of Red Hill in the Cortez trend. Additional details will be provided after a comprehensive team review.
Further, the company said its Annual General Meeting is scheduled for October 7, 2024, to approve a capital consolidation and reverse split, potentially altering the warrant exercise price.