Vancouver, Canada / TheNewswire / February 26, 2019 - Nexus Gold Corp. ("Nexus" or the "Company") (TSX-V: NXS, OTC: NXXGF, FSE: N6E) is pleased to announce that it has closed an initial tranche of its non-brokered private placement. In connection with closing of the initial tranche, the Company issued 9,744,913 units (each, a "Unit") at a price of $0.115 per Unit for gross proceeds of $1,120,665. Each "Unit" consists of one common share of the Company, and one common share purchase warrant (each, a "Warrant"). Each Warrant entitles the holder to acquire an additional common share at a price of $0.18 for a period of twenty-four months.
The Company intends to complete further tranches of the placement. The Company also anticipates that a portion of the placement will be comprised of flow-through units (each, an "FT Unit"), which will be offered by the Company at a price of $0.15 per FT Unit. Each "FT Unit" will consist of one flow-through common share of the Company, and one common share purchase warrant entitling the holder to acquire an additional common share at a price of $0.20 for a period of twenty-four months. It is expected that the gross proceeds from the placement will not exceed $3,000,000. The maximum number of Units that will be issued by the Company in connection with the placement, including this initial tranche and any FT Units, will not exceed 26,086,957.
Proceeds from the issuance of FT Units will be utilized by the Company in the development of its McKenzie Gold Project, located in the Red Lake region of Northwestern Ontario, and its New Pilot Gold Project, located in the Bridge River mining camp in British Columbia.
In connection with completion of the initial tranche of the placement, the Company paid finders' fees of $32,790, and issued 285,130 Warrants, to certain parties who assisted the Company by introducing subscribers to the placement. The Company may pay additional finders' fees on subsequent tranches of the placement.
All securities issued in connection with the closing of the initial tranche of the placement, and any subsequent tranches, will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws. Completion of any further tranches of the placement remain subject to the approval of the TSX Venture Exchange.
About the Company
Nexus Gold is a Vancouver-based gold exploration and development company with active projects in West Africa and Canada. The company is currently concentrating its efforts on establishing a compliant resource at one or more of it's four current Burkina Faso-based projects which total over 560-sq kms of land located on active gold belts and proven mineralized trends. In Canada the Company is moving through exploration phases at it's wholly-owned McKenzie Gold Project in Red Lake, Ontario, and the new Pilot Project, in the Bridge River Mining Camp, British Columbia. For more information please visit www.nexusgoldcorp.com.
On behalf of the Board of Directors of
NEXUS GOLD CORP.
President & CEO
Neither 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 release. This news release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not assume any obligation to update any forward-looking statements, except as required by applicable laws.