Royalty Agreement and US$175M Financing Propel Gold Project Forward

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NexGold Mining Corp. (NEXG:TSX.V; NXGCF:OTCQX; TRC1:FSE) announced a binding royalty agreement with an affiliate of Appian Capital Advisory Ltd., alongside a non-binding letter of intent (LOI) for potential project financing. The agreements support NexGold's 100%-owned Goldboro Gold Project in Nova Scotia, Canada.

Under the terms of the royalty agreement, Appian will pay NexGold's subsidiary, Goldboro Gold Mines Inc. (GGM), US$24 million in exchange for a 2.9% net smelter return (NSR) royalty. The NSR will apply to all minerals produced from the Goldboro project until 1.25 million ounces of gold or gold equivalent is reached. After that threshold, the royalty will apply only to gold for the life of the project. NexGold has also retained a buyback option that would reduce the royalty to 1.0% under specified conditions. Following the announcement, NexGold's stock surged on high volume trading.

The deal includes security over GGM's assets, including the Goldboro project and associated entities. NexGold intends to use the funds to repurchase an existing royalty, reduce debt, and support project development activities. The agreement remains subject to customary closing conditions, including approval from the TSX Venture Exchange, and is expected to close by the end of September 2025.

In addition to the royalty, NexGold signed a non-binding LOI with Appian for a senior secured credit facility of up to US$175 million. The facility, if finalized, would fund the construction and development of the Goldboro project. The LOI is not yet a definitive agreement and will require further negotiation, board approvals, and regulatory consents. According to the company, terms will be disclosed once a final agreement is executed.

Kevin Bullock, NexGold's CEO, stated, "This royalty financing provides NexGold with important non-dilutive capital to help advance Goldboro towards construction, as well as deleveraging the balance sheet."

Gold at a Turning Point as Demand Surpasses Supply

Gold prices continued to rise sharply in 2025, with multiple market observers noting a confluence of macroeconomic forces, supply constraints, and shifting investor behavior as key drivers. As of mid-September, gold had gained over 40% year-to-date, briefly surpassing US$3,700 per ounce. Chris Reilly of RiskHedge described the performance as one of the strongest since 1979, highlighting the metal's durability as a long-term asset untethered to trade flows or economic growth.

Institutional interest in gold has also increased. On September 17, Matthew Piepenburg of Gold Switzerland attributed part of the rally to declining confidence in fiat currencies and noted that gold's Tier-1 reclassification by the Bank for International Settlements had restored its role as a central bank reserve asset. Piepenburg linked the shift to ongoing concerns about U.S. fiscal policy, suggesting that gold was benefiting from a broader reallocation of global capital.

Underlying supply and demand dynamics have further supported the price. A report published on September 18 by Ahead of the Herd revealed that gold demand in 2024 reached 4,974.5 tonnes, outpacing total mine production of 3,661.2 tonnes. The resulting 1,370-tonne shortfall was covered through recycled material. The report labeled this imbalance as a symptom of "peak gold," noting that even with exploration and development underway, production has not kept pace with consumption.

Gold sector optimism remained elevated in late September as miners in Western Australia pointed to continued upside despite already historic gains. According to a report from Stockhead on September 25, Pantoro Managing Director Paul Cmrlec said there had been "a step change in the need for gold" as it increasingly gains traction as a store of value in a world shaped by inflation, tariffs, and shifting monetary policy. He noted that major banks and industry analysts continued to see growth potential within the current cycle even after gold climbed past US$3,700 per ounce.

The same Stockhead report quoted Ora Banda Managing Director Luke Creagh, who reinforced the long-term outlook by stating, "It'll get to US$10,000, we just don't know when, whether that's one year or 50 years." The article highlighted that with gold up roughly 40% year-to-date, producers such as Ora Banda and Pantoro are channeling strong cash flows into organic growth strategies. Ora Banda, now valued at about US$2 billion, is expanding underground operations at its Davyhurst project, while Pantoro is targeting a production increase at the Norseman mine to 200,000 ounces annually. Both companies have emphasized that the strength in gold pricing has enabled reinvestment in assets that had long been underfunded, supporting expansion even as other parts of the Australian economy contract.

Analysts Endorse NexGold's Dual-Project Strategy

On July 25, Ron Stewart of Red Cloud Securities reaffirmed a Buy rating on NexGold Mining Corp., maintaining a target price of CA$4.00 per share. At the time, this represented a projected 419% upside. Stewart emphasized the significance of recent infill drilling results at the Goldboro project, noting they aligned with earlier data and supported the existing geological model. "These results confirm gold mineralization over previously unrecognized areas," he wrote, adding that the new findings may contribute to an updated mineral resource estimate anticipated in the second half of 2025. Stewart cited Goldboro's current Measured and Indicated mineral resource of 2.6 million ounces, with an additional 500,000 ounces in the Inferred category.

Red Cloud's financial model was updated to reflect revised gold price assumptions and the latest company data. The analysis assumed Goldboro would be developed ahead of NexGold's Goliath project, projecting average annual production of 100,000 ounces over a 12-year mine life, at an all-in sustaining cost (AISC) of US$1,180 per ounce. The firm modeled Goldboro entering production in 2028, followed by Goliath in 2031. Stewart noted that the sequencing would have little impact on overall valuation and identified several upcoming catalysts, including further drill results, a revised resource estimate, permitting milestones, and a feasibility study for Goliath.

*On August 15, John Newell of John Newell & Associates rated NexGold as a "Strong Speculative Buy," citing its position as a mid-tier gold developer with over 6 million ounces in total mineral resources. He highlighted NexGold's plan to bring two assets into production, each targeting approximately 100,000 ounces of gold annually. Newell pointed to positive economic studies supporting both projects, referencing an after-tax net present value (NPV) of CA$336 million for Goliath at a US$1,750 gold price, and CA$328 million for Goldboro at US$1,600. He concluded that NexGold "offers investors a rare combination of scale, jurisdictional safety, and near-term catalysts."

In a follow-up note on August 21, Stewart reiterated Red Cloud's Buy rating and CA$4.00 target price, calling attention to NexGold's tier-one jurisdiction exposure and strong development pipeline. "We believe NexGold has one of the largest, most advanced-stage development asset portfolios in Canada," he wrote. The firm assigned CA$2.00 per share of value to Goldboro and CA$1.70 to Goliath, with CA$0.30 attributed to cash and other assets. Stewart also pointed to the August 19 receipt of Goldboro's final major permit as a key milestone, bringing the project closer to shovel-ready status and strengthening the company's development timeline.

Advancing One of Nova Scotia's Most-Ready Gold Projects

The Goldboro Gold Project is among the most advanced gold development assets in Nova Scotia. According to NexGold's September 2025 investor presentation, the project is fully permitted, with a feasibility study (FS) completed in 2022. The FS outlines a ~11-year open-pit mine life with average annual production of 100,000 ounces of gold, an after-tax internal rate of return (IRR) of 25.5%, and average all-in sustaining costs (AISC) of US$849 per ounce at a base gold price of US$1,600 per ounce.

The project has received key provincial and federal approvals, including an Environmental Assessment, Industrial Approval, Crown Land Lease, and a Schedule 2 Amendment. Infrastructure plans include a fully lined tailings facility, on-site employee accommodations, and water management systems, all designed within a single watershed to reduce permitting complexity.

NexGold is pursuing a phased development strategy. The initial phase will focus on open-pit mining, with underground development expected to begin in year six. The company recently completed a 12,000-meter drill program to expand near-surface mineralization and has identified additional targets along a 51-kilometer strike zone.

With the royalty financing expected to close shortly and a framework in place for potential project debt, the company appears positioned to move toward a construction decision. NexGold also continues to advance its Goliath Gold Complex in Ontario, which has received federal environmental approval and is similarly staged for development.

Ownership and Share Structure

The company notes that management and insiders own 2.9% of NexGold.  Institutions and strategic investors, including Frank Giustra who owns 7.0%, own 51.9% of the shares in the company.      

NexGold has 158.9 million shares issued and outstanding and a market cap of CA$160.5 million.