NexGold and Signal Gold Announce Merger to Create one of Canada’s Most Advanced Near-Term Gold Developers with a Combined 4.7 million Gold Ounces of Measured and Indicated Resources and a Plan to Achieve 200,000+ ounces of Annual Production
NexGold and Signal Gold Announce Merger to Create one of Canada’s Most
Advanced Near-Term Gold Developers with a Combined 4.7 million Gold
Ounces of Measured and Indicated Resources and a Plan to Achieve 200,000+
ounces of Annual Production
Concurrent $11.5 Million Private Placement Equity Financing and Proposed Debt Restructuring
Not for distribution to U.S. newswire services or dissemination in the United States
TORONTO, Oct. 10, 2024 -- NexGold Mining Corp. (TSXV: NEXG; OTCQX: NXGCF ) (“NexGold” or “NEXG”) and Signal
Gold Inc. (TSX: SGNL; OTCQB: SGNLF) (“Signal” or “SGNL”) are pleased to announce that they have entered into a
definitive arrangement agreement dated October 9, 2024 (the “Agreement ”) to combine the two companies and create a top
near-term gold developer advancing NexGold’s Goliath Gold Complex Project (“ Goliath Project ”) in Northern Ontario and
Signal’s Goldboro Gold Project (“Goldboro Project ”) in the historic Goldboro Gold District in Nova Scotia (the “Transaction”).
All dollar references in this release are to Canadian dollars, unless otherwise stated.
Transaction Highlights:
• Two Canadian, near-term development projects, with Environmental Assessment Approvals in place, and a plan to
attain production of over 200,000 ounces per year.
• Combined 4.7 million gold ounces of Measured and Indicated Mineral Resources and 1.3 million gold ounces of Inferred
Mineral Resources between both companies*.
• Significant growth potential at both Projects, across a combined property package of more than 60,000 hectares (600
km2) with potential along strike, at depth, and through new discoveries, including recent high-grade drill results at the
western extension of the Goldboro Deposit.
• Concurrent non-brokered private placement financing for up to $11.5 million with NexGold Board and Management to
subscribe for up to $1.0 million in the financing. In addition, current greater than 10% NexGold shareholder, Frank
Giustra, will be participating in a meaningful way.
• Elimination of single asset risk for both Signal and NexGold, as both Projects are in advanced stages of permitting, with
the completion of project permits expected in 2025. The Goliath Project has Federal Environmental Assessment
Approval and the Goldboro Project has Provincial Environmental Assessment Approval.
• Combined team brings complementary skills and experience required for successful development, including geology,
engineering, finance and capital markets, governance and sustainability.
• Robust Financial Position – The concurrent financing, proposed debt restructuring, and available cash resources provide
significant funding to advance both projects towards a construction decision while deleveraging the combined entity.
• Value Creation – Operational and administrative synergies and savings with workflow sequencing and phased
development approach for the two projects have the potential to unlock significantly more value for NexGold and Signal
shareholders than could be realized on a standalone basis.
• Growth and consolidation strategy – The combined company will focus on showing growth in the Goldboro and Goliath
Districts through drilling while assessing further opportunities for corporate growth.
• Restructured Credit Facility with Nebari to deleverage combined entity:
◦ It is proposed that Signal’s outstanding credit facility of approximately US$20.4 million with Nebari and
NexGold’s US$6.0 million facility with Extract Capital will be repaid.
◦ NexGold is working to arrange a new US$12 million secured credit facility with Nebari over a term of 30 months
and the issuance of US$4.0 million of NexGold shares, with a one (1) year right to place.
◦ The arrangement would also grant a 0.6% NSR on the Goldboro Project to Nebari for US$6 million with a 100%
buy-back right at the Company’s option for the first 30 months.
*Refer to Mineral Projects Section below.
Morgan Lekstrom, President of NexGold, commented: “This will be a transformative transaction that combines two near-
term buildable projects in Canada on a potential path to a production profile of over 200,000 ounces per year. This reflects the
execution of NexGold’s strategy of targeting high-value gold projects with potential production of over 100,000 ounces and a
capital expenditure of under $400 million. I am proud to have led this acquisition and worked closely with Kevin, Orin, Jeremy,
and the entire team to execute on this vision of combining these two companies. With the Transaction, we have significantly
de-risked the combined company as it will no longer be a single asset company but rather a company with a pipeline of low-
cost, low risk, high return mine development and expansion projects in Canada. Not only do we have a path to construction on
both Projects when project financing is obtained, but both historic gold districts have demonstrated tremendous expandability
and upside potential that could contribute to larger, longer-life Projects.”
Kevin Bullock, President and CEO of Signal, commented: “I believe that the Transaction brings together two cornerstone
Canadian gold projects and presents an exciting opportunity to create a leading gold development company in Canada during
a time of increasing gold prices. The combined company will be led by an experienced and skilled leadership team and will
benefit from a strong balance sheet. I am excited to work towards unlocking significant value for the shareholders of NexGold
after the completion of this transformative business combination.”
Jeremy Wyeth, CEO of NexGold , commented: “The combination of the Goliath and Goldboro Projects and the experience
and skills of the combined team positions the Company uniquely with two of the next few gold mines to be built in Canada, as
both projects are already significantly advanced in permitting. The synergies in the teams allows the new NexGold executive to
specifically focus on core areas of expertise and competence as we progress towards a construction decision on one of our
assets and continue to advance project financing discussions. We are well-positioned to become the next mid-tier gold
producer in Canada.”
Board of Directors and Senior Management of Combined Company
The combined company’s board of directors will be led by Jim Gowans as Chair and will comprise six (6) board members
nominated by NexGold and two (2) board members nominated by Signal. Reporting to the board of directors, the combined
company will be managed by Kevin Bullock as President and Chief Executive Officer & Director, Jeremy Wyeth as Chief
Operating Officer, and Orin Baranowsky as Chief Financial Officer.
Mr. Bullock is a registered Professional Mining Engineer and has been President and Chief Executive Officer of Signal since
2019 and is currently a director of B2Gold. Mr. Bullock was previously President and CEO of Volta Resources Inc. since its
inception in 2002 and through to the ultimate sale of the company to B2Gold in 2013. Mr. Bullock has over 30 years of senior
mining experience in exploration, mine development, mine operations and capital markets. Throughout his career, Mr. Bullock
has been involved in projects from inception through exploration to development and production. Mr. Bullock has also worked
for Kirkland Lake Gold and Iamgold Corporation.
Mr. Wyeth, CEO of NexGold and President and Chief Executive Officer of Treasury Metals since December 2020, was
previously Operations Director at Wood Canada Ltd. and an operational executive of De Beers, where he led the development,
construction, commissioning and ramp-up of the Victor Diamond Mine in Northern Ontario. He has held various senior
management positions, including with Excellon Resources and Anglo American, and served on the boards of Vector
Resources Inc., DRA Americas Inc., DRA Brazil and the Ontario Mining Association and is a member of the Board of
NexGold.
Mr. Baranowsky, Chief Financial Officer of NexGold and Chief Financial Officer of Treasury Metals since March 2021, has
more than 25 years of finance and capital markets experience. Previously, he was the Chief Financial Officer for Blue Thunder
Mining Inc. and Chief Financial Officer of Stornoway Diamond Corporation, where he was instrumental in raising more than $1
billion for the construction of the Renard Diamond Mine in northern Québec. He holds an Honours Bachelor of Business
Administration degree from Wilfrid Laurier University, is a member of the Chartered Professional Accountants of Ontario and is
a CFA Charterholder.
Transaction Terms
Pursuant to the Transaction, NexGold will acquire all the issued and outstanding common shares of Signal (“ Signal Shares ”)
in exchange for common shares of NexGold (“ NEXG Shares ”) by way of a plan of arrangement under the Business
Corporations Act (Ontario). Each SGNL share will be exchanged for 0.1244 of a NEXG Share (the “ Exchange Ratio ”). Upon
completion of the Transaction, existing NexGold and Signal shareholders will own approximately 71% and 29% of NexGold,
respectively, on a fully diluted in-the-money basis (prior to the completion of the concurrent financing, which is described
below).
The Transaction will be completed pursuant to a court-approved plan of arrangement under the Business Corporations Act
(Ontario). The Transaction will require approval of at least: (i) 66⅔% of the votes cast by Signal shareholders; and (ii) a simple
majority of the votes cast by Signal shareholders, excluding the votes cast by certain persons in accordance with Multilateral
Instrument 61-101 Protection of Minority Security Holders in Special Transactions . In addition to shareholder and court
approvals, the Transaction is subject to the approvals of the Toronto Stock Exchange (“ TSX”) and TSX Venture Exchange
(“TSXV”), the completion of the Debt Restructuring and the satisfaction of certain other closing conditions customary in
transactions of this nature.
Signal stock options will be exchanged for fully vested replacement stock options exercisable to acquire NEXG Shares as
adjusted to reflect the Exchange Ratio, share purchase warrants of Signal will become exercisable to purchase NEXG Shares
based on the Exchange Ratio, and share units of Signal will vest for anyone not continuing with the combined company and for
continuing individuals entitling them to NEXG Shares upon vesting as adjusted to reflect the Exchange Ratio.
The officers and directors of Signal, collectively holding approximately 3.1% of the Signal Shares issued and outstanding, have
entered into voting support agreements pursuant to which they have agreed, among other things, to vote their Signal Shares in
favour of the Transaction.
The Agreement contains customary reciprocal deal-protection provisions including non-solicitation covenants and a right to
match any superior proposal as defined in the Agreement. Under certain circumstances, NexGold or Signal would be entitled
to a reciprocal termination fee of C$1,750,000.
Complete details of the Transaction will be included in a management information circular to be delivered to Signal
shareholders in due course. It is anticipated that the Signal shareholder meeting and closing of the Transaction will take place
in December 2024.
Recommendation by the Boards of Directors and Fairness Opinion
The Arrangement Agreement has been unanimously approved by the Board of Directors of each of NexGold and Signal after
consultation with their respective financial and legal advisors. The Board of Directors of Signal unanimously recommend that
its shareholders vote in favour of the Transaction.
The Board of Directors of Signal has received an opinion from BMO Capital Markets stating that, as of the date of such
opinion, based upon and subject to the assumptions, limitations and qualifications set forth therein, the consideration to be
received by Signal shareholders pursuant to the Transaction is fair, from a financial point of view, to Signal shareholders.
Concurrent Financing
In connection with the Transaction, each of Signal and NexGold will conduct a concurrent non-brokered private placement for
the sale of units of Signal (“NFT Units”) comprised of one common share and one-half of one warrant (each whole warrant, an
“NFT Unit Warrant ”) and units of NexGold (“FT Units”) comprised of one flow-through common share (“FT Shares”) and one-
half of one warrant (each whole warrant, an “FT Unit Warrant ”), issued on a non-flow-thorough basis, for total gross proceeds
of up to C$11,500,000. Each of Signal and NexGold will have the option to sell up to an additional 50% of the NFT Units and
FT Units (the " Option").
Hard Dollar Financing
The NFT Units will be issued by Signal at a price of C$0.08705 per NFT Unit, for aggregate gross proceeds of up to
C$6,500,000 (the " Hard Dollar Financing "). Each NFT Unit Warrant will entitle the holder thereof to purchase one Signal
Share at a price of $0.11818 for a period of 24 months after the Closing Date (as hereinafter defined). At the effective time of
the Transaction, the Signal Shares underlying the NFT Units will be exchanged pursuant to the Transaction for NEXG Shares
at the Exchange Ratio, and the NFT Unit Warrants will be adjusted in accordance with their terms such that the NFT Unit
Warrants will be exercisable to acquire NEXG Shares based on the Exchange Ratio.
Signal will offer up to 74,669,730 NFT Units at a price of C$0.08705 per NFT Unit, for aggregate gross proceeds of up to
C$6,500,000. If the Option is fully exercised, an additional 37,334,865 NFT Units will be issued, for additional gross proceeds
of C$3,250,000. The net proceeds of the Hard Dollar Financing are expected to be used by the combined company to fund the
retirement of certain debt, the exploration and advancement of the Goliath Project and Goldboro Project and for working capital
and general corporate purposes.
The Hard Dollar Financing is being conducted in all of the provinces and territories of Canada, and/or in jurisdictions other than
Canada, including the United States, pursuant to applicable exemptions from the prospectus and/or registration requirements.
FT Financing
The FT Units will be issued by NexGold at a price of $0.80 per FT Unit for aggregate gross proceeds of up to C$5,000,000
million (the “ FT Financing ”, together with the Hard Dollar Financing, the “ Concurrent Financing ”). If the Option is fully
exercised, an additional 3,125,000 FT Units will be issued for additional gross proceeds of C$2,500,000. The FT Shares will be
issued as “flow-through shares” within the meaning of the Income Tax Act (Canada).
Each FT Unit Warrants will entitle the holder thereof to purchase one NEXG Share at a price of C$1.05 for a period of 24
months following the date of issuance. Each FT Unit Warrant will be exercisable by the holder to acquire one common share
of NexGold at a price of C$1.05 for a period of two years following the Closing Date.
The FT Financing is being conducted in all of the provinces and territories of Canada pursuant to applicable prospectus
exemptions. The NEGX Shares to be issued in connection with the FT Financing will be subject to a statutory four-month and
one day hold period from the closing date.
The securities to be offered in the Concurrent Financing have not been, and will not be, registered under the U.S. Securities
Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of,
United States persons absent registration or any applicable exemption from the registration requirements of the U.S.
Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful.
An amount equal to the gross proceeds from the issuances of the FT Shares will be used to fund advancement of NexGold’s
projects. NexGold will, in a timely and prescribed manner and form, incur expenses which will: (i) constitute "Canadian
exploration expenses," and (ii) constitute “flow-through mining expenditures,” (as all such terms are defined in the Income Tax
Act (Canada)), in an amount equal to the gross amount raised pursuant to the sale of FT Shares. NexGold will, in a timely and
prescribed manner and form, renounce the Canadian exploration expenses (on a pro rata basis) to each subscriber with an
effective date of no later than December 31, 2024, in accordance with the Income Tax Act (Canada), as applicable, all in
accordance with the terms of the subscription and renunciation agreements to be entered into by NexGold and the subscribers
in the FT Financing.
Completion of the Concurrent Financing is subject to TSX, TSXV and other necessary regulatory approvals, including
disinterested shareholder approval of the Hard Dollar Financing by Signal shareholders. Closing of the Concurrent Financing is
expected to occur two days prior to the closing of the Transaction in early December 2024 or such other date or dates as
Signal and NexGold may agree in writing (the “Closing Date”). Toronto Stock Exchange and shareholder approval is required
for the completion of the Signal Offering.
It is anticipated that the NexGold Board and Management will subscribe for up to $1.0 million in the Concurrent Financing. In
addition, current greater than 10% NexGold shareholder, Frank Giustra, will be participating in a meaningful way. By virtue of
their participation, the Concurrent Financing would constitute a “related party transaction” under applicable Canadian securities
laws. NexGold expects to file a material change report including details with respect to the related party transaction less than
21 days prior to the closing of the Concurrent Financing, which NexGold deems reasonable in the circumstances so as to be
able to avail itself of potential financing opportunities and complete the Concurrent Financing in an expeditious manner. As the
related party transaction will not exceed specified limits and will constitute a distribution of securities for cash, it is expected
that neither a formal valuation nor minority shareholder approval will be required in connection with the Concurrent Financing,
and that NexGold will be entitled to rely on applicable exemptions therefrom under applicable Canadian securities laws.
Debt Restructuring
NexGold has agreed to certain indicative terms with Nebari to complete a restructuring of the two entities’ respective debt
facilities, which will significantly reduce the debt profile of the combined entity going forward. It is proposed that Signal’s
outstanding credit facility of approximately US$20.4 million with Nebari and NexGold’s US$6.0 million facility with Extract
Capital will be repaid. A new US$12.0 million facility with Nebari is contemplated that will have a 30-month term with an
interest rate of 11.4%, payable monthly in arrears and secured against both the Goliath and Goldboro Projects. Existing
warrants associated with the Nebari facility with Signal will be cancelled, and 3,160,602 new warrants will be issued to Nebari
with an exercise price of $1.00 per NEXG Share with a term of 30 months. In addition, the arrangement contemplates the
granting of a 0.6% NSR on the Goldboro Project to Nebari for US$6.0 million, which includes a 100% buy-back right for the
first 30 months at the Company’s option. If the royalty is not repurchased during the 30-month period, then the royalty rate
shall increase to 2.0%.
The proposed new loan and royalty, together with a proposed US$4.0 million equity placement with Nebari and certain
proceeds from the Hard Dollar Financing, will be used to retire the existing debt. The Debt Restructuring is subject to reaching
a binding agreement with Nebari and agreements with Extract Capital and Sprott Private Resource Streaming and Royalty (B)
Corp. with respect to the early repayment and subordination of certain existing security.
Advisors and Counsel
Fiore Management & Advisory Corp. is acting as advisor to NexGold and DuMoulin Black LLP is acting as NexGold’s legal
counsel in connection with the Transaction.
BMO Capital Markets has acted as financial advisor to Signal in connection with the Transaction. Cassels Brock & Blackwell
LLP is acting as Signal’s legal counsel.
Mineral Projects
Goliath Project
Following is a summary of the mineral resource estimate for the Goliath Project as reflected in the technical report of NexGold
entitled “Goliath Gold Complex NI 43-101 Technical Report and Prefeasibility Study, Kenora District, Ontario, Canada” dated
March 27, 2023, with an effective date of February 22, 2023.
Goliath Project Mineral Resource Estimate
Type Classification
Cut-off Grade
(“CoG”) (g/t)
Tonnes Au (g/t) Au (Oz) Ag (g/t) Ag (Oz)
Open Pit
Measured 0.25 / 0.3 6,223,000 1.20 239,500 4.70 940,600
Indicated 0.25 / 0.3 58,546,000 0.82 1,545,000 2.53 1,878,500
Measured + Indicated 0.25 / 0.3 64,769,000 0.86 1,784,500 2.99 2,819,100
Inferred 0.25 / 0.3 32,301,000 0.73 754,900 0.80 85,200
Underground
Measured 2.20 170,000 6.24 34,100 22.34 122,100
Indicated 2.20 2,772,000 3.59 320,000 7.08 580,800
Measured + Indicated 2.20 2,942,000 3.74 354,100 8.04 702,900
Inferred 2.20 270,000 3.21 27,900 4.06 6,300
Total
Measured 6,393,000 1.33 273,600 5.17 1,062,700
Indicated 61,318,000 0.95 1,865,000 2.98 2,459,300
Measured + Indicated 67,711,000 0.98 2,138,600 3.42 3,522,000
Inferred 32,571,000 0.75 782,800 0.84 91,500
Notes: 1. Mineral Resources were estimated by ordinary kriging by Dr. Gilles Arseneau, associate consultant of SRK
Consulting (Canada) Inc., Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for
Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best
Practice Guidelines (2019). This estimate of Mineral Resources may be materially affected by environmental, permitting, legal,
title, taxation, sociopolitical, marketing, or other relevant issues. Mineral Resources that are not mineral reserves do not have
demonstrated economic viability. 2. Mineral Resource effective date January 17, 2022. 3. Goliath Open Pit Mineral Resources
are reported within an optimized constraining shell at a cut-off grade of 0.25g/t gold that is based on a gold price of
US$1,700/oz, a silver price of US$23/oz, and a gold and silver processing recovery of 93.873*Au(g/t)^0.021 and 60%
respectively. 4. Goldlund Open Pit Mineral Resources are reported within an optimized constraining shell at a cut-off grade of
0.3g/t gold that is based on a gold price of US$1,700/oz and a gold processing recovery of 90.344xAu(g/t)^0.0527. 5. Miller
Open Pit Mineral Resources are reported within an optimized constraining shell at a cut-off grade of 0.3 g/t gold that is based
on a gold price of US$1,700/oz and a gold processing recovery of 93.873*Au(g/t)^0.021. 6. Goliath Underground Mineral
Resources are reported inside shapes generated from Deswick Mining Stope Optimiser (DSO) at a cut-off grade of 2.2g/t gold
that is based on a gold price of US$1,700/oz, a silver price of US$23/oz, and a gold and silver processing recovery of
93.873*Au(g/t)^0.021 and 60% respectively. 7. Goldlund Underground Mineral Resources are reported inside DSO shapes at a
cut-off grade of 2.2g/t gold that is based on a gold price of US$1,700/oz and a gold processing recovery of 90.344xAu(g/t)
^0.0527. 8. Gold and Silver assays were capped prior to compositing based on probability plot analysis for each individual
zones. Assays were composited to 1.5 m for Goliath, 2.0 m for Goldlund and 1.0 m for Miller. 9. Excludes unclassified
mineralization located within mined out areas. 10. Silver grade and ounces are derived from the Goliath tonnage only. 11.
Goliath Open Pit and Goldlund/Miller cut-off grades are 0.25g/t and 0.30g/t, respectively. 12. All figures are rounded to reflect
the estimates’ relative accuracy, and totals may not add correctly.
Goldboro Project
Following is a summary of the mineral resource estimate for the Goldboro Project as reflected in the technical report of Signal
entitled “NI 43-101 Technical Report and Feasibility Study for the Goldboro Gold Project, Eastern Goldfields District, Nova
Scotia” dated January 11, 2022, with an effective date of December 16, 2021.
Goldboro Mineral Resource Estimate, Open Pit (0.45 g/t CoG) and Underground (2.40 g/t CoG)
Resource Type CoG (g/t) Category Tonnes (‘000) Gold Grade
(g/t)
Gold Troy
Ounces
Open Pit 0.45
Measured 7,680,000 2.756 680,518
Indicated 7,988,000 2.886 741,220
Measured + Indicated 15,668,000 2.822 1,421,738
Inferred 975,000 2.113 66,237
Underground 2.40
Measured 1,576,000 7.450 377,445
Indicated 4,350,000 5.590 781,794
Measured + Indicated 5,925,000 6.085 1,159,239
Inferred 2,206,000 5.893 418,013
Combined Open Pit
and Underground*
0.45 and 2.40
Measured 9,255,000 3.555 1,057,963
Indicated 12,338,000 3.839 1,523,014
Measured + Indicated 21,593,000 3.718 2,580,977
Inferred 3,181,000 4.734 484,250
* Combined Open Pit and Underground Mineral Resources; The Open Pit Mineral Resource is based on a CoG of 0.45 g/t gold
and the Underground Mineral Resource is based on CoG of 2.40 g/t gold.
Notes: (1) Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral
Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice
Guidelines (2019). Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. This
estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical,
marketing, or other relevant issues. (2) Mineral Resources are inclusive of Mineral Reserves. (3) Open pit Mineral Resources
are reported at a cut-off grade (CoG) of 0.45 g/t gold that is based on a gold price of C$2,000/oz (approximately US$1,600/oz)
and metallurgical recovery factor of 89% around cut- off as calculated from ((GRADE-(0.0262*LN(GRADE)
+0.0712))/GRADE*100)-0.083. (4) Underground Mineral Resource is reported at a CoG of 2.40 g/t gold that is based on a gold
price of C$2,000/oz (approximately US$1,600/oz) and a gold processing recovery factor of 97%. Assays were variably capped
on a wireframe-by-wireframe basis. SG was applied using weighted averages to each individual wireframe. Mineral Resource
effective date November 15, 2021. All figures are rounded to reflect the relative accuracy of the estimates and totals may not
add correctly. Excludes unclassified mineralization located within mined out areas. Reported from within a mineralization
envelope accounting for mineral continuity.
For more information about NexGold and Signal, please refer to each company’s profile on SEDAR+ at www.sedarplus.ca.
Technical Disclosure and Qualified Persons
Adam Larsen, B.Sc., P. Geo., Director of Exploration of NexGold, is a “qualified person” within the meaning of National
Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has reviewed and approved the scientific and
technical information in this news release regarding the Goliath Project on behalf of NexGold.
Kevin Bullock, P. Eng., President, CEO and Director of Signal, is a “qualified person” within the meaning of NI 43-101 and has
reviewed and approved the scientific and technical information in this news release regarding the Goldboro Project on behalf of
Signal.
About NexGold Mining Corp.
NexGold Mining Corp. is a gold-focused company with assets in Canada and Alaska. NexGold’s Goliath Project (which
includes the Goliath, Goldlund and Miller deposits) is located in Northwestern Ontario. The deposits benefit substantially from
excellent access to the Trans-Canada Highway, related power and rail infrastructure and close proximity to several
communities including Dryden, Ontario. For information on the Goliath Project, refer to the technical report, prepared in
accordance with NI 43–101, entitled ‘Goliath Gold Complex – NI 43–101 Technical Report and Prefeasibility Study’ and dated
March 27, 2023, with an effective date of February 22, 2023, led by independent consultants Ausenco Engineering Canada Inc.
The technical report is available on SEDAR+ at www.sedarplus.ca, on the OTCQX at www.otcmarkets.com and on NexGold’s
website at www.nexgold.com.
NexGold also owns several other projects throughout Canada, including the Weebigee-Sandy Lake Gold Project JV, and
grassroots gold exploration property Gold Rock. In addition, NexGold holds a 100% interest in the high-grade Niblack copper-
gold-zinc-silver VMS project, located adjacent to tidewater in southeast Alaska. NexGold is committed to inclusive, informed
and meaningful dialogue with regional communities and Indigenous Nations throughout the life of all our Projects and on all
aspects, including creating sustainable economic opportunities, providing safe workplaces, enhancing of social value, and
promoting community well- being. Further details about NexGold are available on NexGold’s website at www.nexgold.com.
About Signal Gold Inc.
Signal is advancing the Goldboro Gold Project in Nova Scotia, a significant growth project subject to a positive Feasibility
Study which demonstrates an approximately 11-year open pit life of mine with average gold production of 100,000 ounces per
annum and an average diluted grade of 2.26 grams per tonne gold. For further details, refer to the technical report entitled ‘NI
43-101 Technical Report and Feasibility Study for the Goldboro Gold Project, Eastern Goldfields District, Nova Scotia’ dated
January 11, 2022, with an effective date of December 16, 2021). The technical report is available on SEDAR+ at
www.sedarplus.ca, on the OTCQX at www.otcmarkets.com and on Signal’s website at www.signalgold.com. On August 3,
2022, the Goldboro Project received its environmental assessment approval from the Nova Scotia Minister of Environment and
Climate Change, a significant regulatory milestone, and Signal has now submitted all key permits including the Industrial
Approval, Fisheries Act Authorization and Schedule 2 Amendment, and the Mining and Crown Land Leases. The Goldboro
Project has significant potential for further Mineral Resource expansion, particularly towards the west along strike and at
depth, and Signal has consolidated 28,525 hectares (~285 km 2) of prospective exploration land in the Goldboro Gold District.
For more information on Signal, please visit Signal’s website at www.signalgold.com.
Contact:
NexGold Mining Corp.
Morgan Lekstrom
President
NexGold Mining Corp.
T: +1 250-574-7350; Toll-free: +1-855-664-4654
Email: [email protected]
Orin Baranowsky
Chief Financial Officer
Signal Gold Inc.
Kevin Bullock
President & CEO
(647) 388-1842
Robert Dufour
Chief Financial Officer
(647) 478-8104
Cautionary Note Regarding Forward-Looking Information
Certain information set forth in this news release contains "forward ‐looking statements" and "forward ‐looking
information" within the meaning of applicable Canadian securities legislation and applicable United States securities laws
(referred to herein as forward ‐looking statements). Except for statements of historical fact, certain information contained
herein constitutes forward‐looking statements which includes, but is not limited to, statements with respect to: completion of
the proposed Transaction, including receipt of all necessary court, shareholder and regulatory approvals, and the timing
thereof; the potential benefits to be derived from the Transaction, including, but not limited to, the future financial or operating
performance of NexGold on a post-Transaction basis, including the Goliath and Goldboro projects, and including, but not
limited to, benefits therefrom, goals, synergies, opportunities, profile, mineral resources, project and production optimization
and potential production, project timelines, prospective shareholdings and integration, the future financial or operating
performance of the combined company and it’s mineral properties and project portfolios; information concerning the
anticipated sale and distribution of Subscription Receipts and FT Shares pursuant to the Concurrent Financing; the
anticipated participation in the Concurrent Financing by directors and officers of NexGold; NexGold’s intended use of the net
proceeds from the Concurrent Financing; the ability to satisfy the escrow release conditions, the anticipated benefits and
impacts of the Concurrent Financing; information concerning the anticipated Debt Restructuring and if a definitive agreement
can be reached with Nebari; the results from work performed to date; expectations with respect to future cash flows from
operations, net debt and financial results; metal or mineral recoveries; the realization of mineral resource and reserve
estimates; the development, operational and economic results of technical reports on mineral properties referenced herein; the
benefits of the development potential of the properties of NexGold and Signal; the future price of gold; the timing and amount
of estimated future production; costs of production; success of exploration activities; the results from work performed to date;
the development, operational and economic results of technical reports on mineral properties referenced herein; magnitude or
quality of mineral deposits; anticipated advancement of mineral properties; exploration expenditures, costs and timing of the
development of new deposits; costs and timing of future exploration; the completion and timing of future development studies;
estimates of metallurgical recovery rates; exploration prospects of mineral properties; the future price of metals; government
regulation of mining operations; environmental risks; the realization of the expected economics of mineral properties; future
growth potential of mineral properties; and future development plans.
Forward-looking statements are often identified by the use of words such as "may", "will", "could", "would", "anticipate",
"believe", "expect", "intend", "potential", "estimate", "budget", "scheduled", "plans", "planned", "forecasts", "goals" and
similar expressions. Forward-looking statements are based on a number of factors and assumptions made by management
and considered reasonable at the time such information is provided. Assumptions and factors include: the successful
completion of the Transaction (including receipt of all regulatory approvals, shareholder and third-party consents), the
Concurrent Financing (including receipt of all regulatory and shareholder approvals), the Debt Restructuring (including if the
parties are able to reach definitive agreements), the integration of NexGold and Signal, and realization of benefits therefrom;
the ability of the combined company to complete its planned exploration programs; the absence of adverse conditions at
mineral properties; availability of the exemption under Section 3(a)(10) of the U.S. Securities Act to the securities issuable in
the Transaction, debt restructuring and the Concurrent Financing; no unforeseen operational delays; no material delays in
obtaining necessary permits; the price of gold remaining at levels that render mineral properties economic; the combined
company’s ability to continue raising necessary capital to finance operations; and the ability to realize on the mineral resource
and reserve estimates. Forward ‐looking statements necessarily involve known and unknown risks and uncertainties, which
may cause actual performance and financial results in future periods to differ materially from any projections of future
performance or result expressed or implied by such forward ‐looking statements. These risks and uncertainties include, but
are not limited to: risks related to the Transaction, including, but not limited to, the ability to obtain necessary approvals in
respect of the Transaction and to consummate the Transaction, the Concurrent Financing and the Debt Restructuring;
integration risks; general business, economic and competitive uncertainties; the actual results of current and future
exploration activities; conclusions of economic evaluations; meeting various expected cost estimates; benefits of certain
technology usage; changes in project parameters and/or economic assessments as plans continue to be refined; future prices
of metals; possible variations of mineral grade or recovery rates; the risk that actual costs may exceed estimated costs;
geological, mining and exploration technical problems; failure of plant, equipment or processes to operate as anticipated;
accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; the
speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and
approvals from government authorities); title to properties; and management's ability to anticipate and manage the foregoing
factors and risks. Although the Companies have attempted to identify important factors that could cause actual actions,
events or results to differ materially from those described in the forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or intended. Readers are advised to study and consider
risk factors disclosed in Integra's NexGold’s and Signal’s annual information forms for the year ended December 31, 2023,
available on www.sedarplus.ca.
There can be no assurance that forward ‐looking statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. The Companies undertake no obligation to update forward ‐
looking statements if circumstances or management's estimates or opinions should change except as required by applicable
securities laws. The forward-looking statements contained herein are presented for the purposes of assisting investors in
understanding the Companies' plans, objectives and goals, including with respect to the Transaction, and may not be
appropriate for other purposes. Forward-looking statements are not guarantees of future performance and the reader is
cautioned not to place undue reliance on forward ‐looking statements. This news release also contains or references certain
market, industry and peer group data, which is based upon information from independent industry publications, market
research, analyst reports, surveys, continuous disclosure filings and other publicly available sources. Although NexGold and
Signal believe these sources to be generally reliable, such information is subject to interpretation and cannot be verified with
complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data gathering process
and other inherent limitations and uncertainties. NexGold and Signal have not independently verified any of the data from third
party sources referred to in this news release and accordingly, the accuracy and completeness of such data is not guaranteed.
Cautionary Statement regarding Mineral Resource Estimates
Until mineral deposits are actually mined and processed, Mineral Resources must be considered as estimates only. The
estimation of Mineral Resources is inherently uncertain, involves subjective judgement about many relevant factors and may
be materially affected by, among other things, environmental, permitting, legal, title, taxation, socio-political, marketing, or
other relevant risks, uncertainties, contingencies and other factors described in the NexGold’s and Signal’s public disclosure
available on SEDAR+ (www.sedarplus.ca). The quantity and grade of reported “Inferred” Mineral Resource estimates are
uncertain in nature and there has been insufficient exploration to define “Inferred” Mineral Resource estimates as an
“Indicated” or “Measured” Mineral Resource and it is uncertain if further exploration will result in upgrading “Inferred” Mineral
Resource estimates to an “Indicated” or “Measured” Mineral Resource category. The accuracy of any Mineral Resource
estimate is a function of the quantity and quality of available data, and of the assumptions made and judgments used in
engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis
of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral Resource estimates may have
to be re-estimated based on, among other things: (i) fluctuations in mineral prices; (ii) results of drilling, and development; (iii)
results of future test mining and other testing; (iv) metallurgical testing and other studies; (v) results of geological and
structural modeling including block model design; (vi) proposed mining operations, including dilution; (vii) the evaluation of
future mine plans subsequent to the date of any estimates; and (viii) the possible failure to receive required permits, licenses
and other approvals. It cannot be assumed that all or any part of a “Inferred” or “Indicated” Mineral Resource estimate will ever
be upgraded to a higher category.
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 news release. No stock exchange, securities
commission or other regulatory authority has approved or disapproved the information contained herein.