NuLegacy Gold Corp (TSX-V:NUG) announced it has completed the issuance of 42 million units to Metalla Royalty & Streaming in exchange for the elimination of annual exploration expenditure obligations on its Red Hill property.
The deal relieves NuLegacy of the requirement to spend US$150,000 annually on exploration for 2024 and 2025.
Each unit, priced at $0.01, consists of one common share and one warrant to purchase an additional share at $0.05, with a five-year expiration.
The units are subject to re-pricing and acceleration if shareholders approve a 25-to-1 reverse stock split at the upcoming October 7, 2024, annual meeting.
NuLegacy also confirmed that it is working to complete its previously announced private placement of 100 million units. The first tranche of 45.2 million units, totaling $452,000, closed on August 27, 2024, and a second tranche is expected to close by the end of September.