Gold Developer Raises CA$10 million to Push Projects Toward Production

1. NexGold Mining Corp. a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. 
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of NexGold Mining Corp. 
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NexGold Mining Corp. (NEXG.V:TSXV; NXGCF:OTCQX; TRC1.F:FRA) has announced a bought deal private placement, securing gross proceeds of approximately US$7.4 million (CA$10 million). National Bank Financial Inc., acting as the sole bookrunner on behalf of a syndicate of underwriters, has agreed to purchase 13,889,000 units at CA$0.72 per unit. Each unit consists of one common share and one common share purchase warrant, exercisable for 36 months at an exercise price of CA$1.05 per share. The financing is expected to close on or around April 9, 2025, pending regulatory approvals, including conditional approval from the TSX Venture Exchange.

The company stated in the announcement that the net proceeds from the offering will be allocated to advancing its mineral projects and for general corporate purposes. NexGold's portfolio includes the Goliath Gold Complex in Northwestern Ontario and the Goldboro Gold Project in Nova Scotia, as well as other exploration assets across Canada and Alaska.

Following this transaction, NexGold's financial position is expected to strengthen. According to the company's investor materials, it held a pro forma cash position of approximately US$18.5 million as of September 30, 2024, prior to this financing. The company's fully diluted share count now stands at approximately 185.8 million shares, with a market capitalization of around US$74 million (CA$100.5 million), based on recent share prices.

The financing terms include a four-month plus one-day hold period on the issued securities in accordance with Canadian securities laws. The offering is not registered under the United States Securities Act of 1933, and as such, the securities cannot be offered or sold in the United States except under an applicable exemption.

Gold Sector Strengthens as Prices Reach Historic Highs

Gold prices continued their upward trajectory, setting new records as investors sought safe-haven assets amid economic uncertainty. A March 15 report from Energy and Capital noted that gold had surpassed the US$3,000 mark early that morning, reaching an all-time high before retreating slightly. While past gold price spikes had led to corrections, the analysis emphasized that demand for gold remained strong as a hedge against inflation.

Analysts David A. Talbot, Ron Stewart, Taylor Combaluzier, Timothy Lee, and Alina Islam raised their 2025 gold price forecast to US$2,500 per ounce from US$2,400.

Technical patterns signaled further bullish momentum for the metal. On March 16, 321Gold discussed wave-based projections for gold and gold mining stocks, indicating that prices were in a well-defined upward trend. The report outlined the potential for significant gains, pointing to historical price movements and market cycles as supporting factors.

The milestone price level drew strong reactions from market participants. Stockhead reported on March 18 that gold had reached a new high above US$3,000 an ounce, reinforcing its status as a preferred store of value. The article highlighted that rising investor interest had contributed to increased activity in gold-related equities.

Meanwhile, institutional investors took note of the shifting market landscape. In a March 18 analysis, Kitco stated that capital was flowing into gold mining stocks at an accelerated pace. The report compared the trend to the 1970s when stagflation drove money managers to reallocate funds from traditional equities into the mining sector. It suggested that a similar pattern was unfolding, positioning gold miners to benefit from ongoing economic uncertainty.

Third-Party Expert Analysis on NexGold Mining Corp.

An updated sector outlook from Red Cloud Securities on January 7 provided insights into the gold market's strength and its implications for producers such as NexGold Mining Corp. Analysts David A. Talbot, Ron Stewart, Taylor Combaluzier, Timothy Lee, and Alina Islam raised their 2025 gold price forecast to US$2,500 per ounce from US$2,400, citing central bank demand, monetary policy shifts, and geopolitical uncertainty as key drivers. Their report suggested that these conditions could be favorable for well-positioned gold producers, including NexGold, as it advanced its Goliath Gold Complex in Ontario. Additionally, Red Cloud revised its currency assumptions, lowering its USD to CAD exchange rate forecast, which could further benefit Canadian gold producers when converting revenues to U.S. dollars.

According to Jay Taylor of J Taylor's Gold, Energy & Tech Stocks newsletter on March 15, NexGold recently announced potential improvements that may reduce both initial and sustaining capital costs for the project while refining its environmental management approach. The FS, being prepared in accordance with NI 43-101 standards, remains on track for completion in the second quarter of this year.

NexGold's CEO, Kevin Bullock, emphasized the significance of these optimizations, stating that the company has integrated insights from engagement with potentially impacted communities to ensure responsible development. He noted that planned modifications could decrease the footprint of the Tailings Storage Facility (TSF) and overall project infrastructure, leading to cost reductions and improved efficiency. Additionally, Bullock highlighted the potential for an earlier closure of the TSF and Waste Rock Storage Facility, which could lower long-term operational and financial assurance obligations starting in Year 4.

Over the past several months, NexGold has collaborated with engineering and environmental partners, including Ausenco, WSP, SLR Consulting Canada Ltd., Minnow Environmental Inc., RockEng, and SRK, to optimize tailings management and improve overall project efficiency. These efforts have resulted in projected enhancements to the GGC's design, which may strengthen the project's economic feasibility while aligning with the company's commitment to environmental stewardship. The forthcoming FS is expected to provide further clarity on these optimizations and their potential impact on NexGold's development strategy.

NexGold Strategic Growth and Development Plans

NexGold has positioned itself as a key gold developer in Canada, focusing on near-permitted projects with a strong resource base. The company's Goliath Gold Complex and Goldboro Gold Project represent potentially two of the next permitted gold mines in Canada, with feasibility and prefeasibility studies supporting their economic viability, as noted in its investor presentation.

The Goliath Gold Complex, which includes the Goliath, Goldlund, and Miller deposits, is forecasted to produce an average of 91,000 gold-equivalent ounces annually over a 13-year mine life, with the first 5 years averaging 117,000 gold equivalent ounces per year and the first nine years averaging 110,000 gold equivalent ounces annually. A February 2023 prefeasibility study outlined an after-tax net present value (NPV) of US$250 million (C$336 million) at a 5% discount rate and a 25.4% internal rate of return (IRR) at a US$1,750 gold price assumption. The project has received federal environmental approval and benefits from its proximity to major infrastructure, including highways and hydroelectric power.

Similarly, the Goldboro Gold Project in Nova Scotia has a feasibility study indicating an 11-year mine life with average annual production of 100,000 ounces. The study projects an after-tax NPV of approximately US$244 million (C$328 million) and a 25.5% IRR, based on a US$1,600 gold price assumption. The project is designed with a phased development approach, starting with open-pit mining before transitioning to underground operations in year six.

Exploration efforts continue across NexGold's portfolio, with recent drilling at Goldboro identifying high-grade intercepts, including 26.09 grams per tonne (g/t) gold over 8.9 meters. The company also maintains exposure to base metals through its 100%-owned Niblack copper-gold-zinc-silver project in Alaska, which holds a NI 43-101 mineral resource estimate of 5.85 million tonnes indicated and 214,000 tonnes inferred.

Ownership and Share Structure

The company notes management and insiders own 2.7% of NexGold. 

Institutions own 22.5%. 

Strategic investors own 35.7%. Frank Guistra owns 8.6% on a partially diluted basis. On a partially diluted basis, Sprott owns 9.3%. Extract owns 10.6%. First Mining owns 2.1%. Matrix owns 1.0%, and Teck owns 1.0%. 

NexGold has 143.5 million shares and a market cap of CA$100.1 million.