Nevada KING Announces Closing of Brokered Portion of Common Share Offering, Welcomes Six New Institutional Shareholders
NEVADA KING ANNOUNCES CLOSING OF
BROKERED PORTION OF COMMON SHARE
OFFERING, WELCOMES SIX NEW
INSTITUTIONAL SHAREHOLDERS
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE
UNITED STATES
./
VANCOUVER, BC
,
May 12, 2023
/CNW/ -
Nevada King Gold Corp.
(TSX-V: NKG) ("
Nevada
King
" or the "
Company
") is pleased to announce a that it has closed the brokered portion of its
previously announced financing for gross proceeds of
$5-million
(the "
LIFE Offering
"). The LIFE
Offering was led by Canaccord Genuity Corp. as lead agent and sole bookrunner, on behalf of a
syndicate of agents that included Roth Canada Inc. (collectively the "
Agents
").
Collin Kettell
, Founder & CEO of
Nevada King
, commented: "With the closing of this offering, we
welcome six new institutions and funds to our growing roster of shareholders. These six orders
constitute over 90% of the
$5-million
LIFE financing, which was priced at market and without a
warrant. Achieving this pricing in light of difficult market conditions is a testament to the level of
investor confidence in the trajectory of the Atlanta Gold Mine Project discovery. The concurrent
$11.25-million
non-brokered portion of the financing is being taken almost entirely by existing
shareholders, and upon closing,
Nevada King
will be well financed for an aggressive 2023
exploration season and beyond."
The Company is continuing with the non-brokered portion of its financing (the "
Non-Brokered
Private Placement
" and together with the LIFE Offering, the "
Offering
") for additional gross
proceeds of
$11.25-million
. The Non-Brokered Private Placement is fully allocated and is expected
to close on or about
May 26, 2023
. The total gross proceeds of the Offering, after the completion of
the Non-Brokered Private Placement are expected to be
$16.25-million
.
In connection with the LIFE Offering, the Company issued 11,111,111 common shares for a
purchase price of
$0.45
per common share. The common shares issued under the LIFE Offering
were issued by way of the Listed Issuer Financing Exemption under Part 5A of National Instrument
45-106 –
Prospectus Exemptions
and are not subject to resale restrictions pursuant to applicable
Canadian securities laws or the policies of the TSX Venture Exchange ("
TSX-V
").
In connection with the LIFE Offering, the Agents received an aggregate cash fee equal to
$250,000
.
The net proceeds of the Offering are intended to be used to advance
Nevada King's
development
and exploration stage assets and for other general corporate purposes.
For further information regarding the Non-Brokered Private Placement, please see the Company's
news releases dated
May 1, 2023
,
May 3, 2023
, and
May 10, 2023
. The issuance of the common
shares under the Non-Brokered Private Placement remains subject to customary conditions,
including, but not limited to, the receipt of all necessary approvals, inclusive of the approval of the
TSX-V.
The securities offered under the Non-Brokered Private Placement have not been registered under
the U.S. Securities Act of 1933, as amended (the "
U.S. Securities Act
"), and may not be offered or
sold in
the United States
absent registration or an applicable exemption from the registration
requirements. This release does not constitute an offer to sell or a solicitation of an offer to buy of
any securities in
the United States
. The securities described herein have not been, and will not be,
registered under the U.S. Securities Act, or any state securities laws, and may not be offered or
sold within
the United States
except in compliance with the registration requirements of the U.S.
Securities Act and applicable state securities laws or pursuant to available exemptions therefrom.
About Nevada King Gold Corp.
Nevada King
is the third largest mineral claim holder in the
State of Nevada
, behind
Nevada Gold
Mines
(Barrick/Newmont) and
Kinross Gold
. Starting in 2016 the Company has staked large project
areas hosting significant historical exploration work along the
Battle Mountain
trend located close to
current or former producing gold mines. These project areas were initially targeted based on their
potential for hosting multi-million ounce gold deposits and were subsequently staked following a
detailed geological evaluation. District-scale projects in
Nevada King's
portfolio include (1) the 100%
owned Atlanta Mine, located 100km southeast of
Ely
, (2) the Lewis and Horse Mountain-Mill Creek
projects, both located between
Nevada Gold Mines'
large
Phoenix
and Pipeline mines, and (3) the
Iron Point project, located 35km east of
Winnemucca, Nevada
. The Company is well funded with
cash of approximately
$10 million
after closing of LIFE Offering.
The Atlanta Mine is a historical gold-silver producer with a National Instrument 43-101 ("
NI 43-101
")
compliant pit-constrained resource of 460,000 oz Au in the measured and indicated category (
11.0M
tonnes at 1.3 g/t) plus an inferred resource of 142,000 oz Au (
5.3M
tonnes at 0.83 g/t). See the NI
43-101 Technical Report on Resources titled "Atlanta Property,
Lincoln County, NV
" with an effective
date of
October 6, 2020
, and a report date of
December 22, 2020
, as prepared by Gustavson
Associates and filed under the Company's profile on SEDAR (
www.sedar.com
).
The scientific and technical information in this news release has been reviewed and approved by
Calvin R. Herron
, P.Geo., who is a Qualified Person as defined by NI 43-101.
NI 43-101 Mineral Resources at the Atlanta Mine
Resource Category
Tonnes
(000's)
Au
Grade
(ppm)
Contained
Au Oz
(000's)
Ag
Grade
(ppm)
Contained
Ag Oz
(000's)
Measured
4,130
1.51
200
14.0
1,860
Indicated
6,910
1.17
260
10.6
2,360
Measured+Indicated
11,000
1.30
460
11.9
4,220
Inferred
5,310
0.83
142
7.3
1,240
Please see the Company's website at
www.nevadaking.ca
.
Neither the 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.
Cautionary Statements Regarding Forward Looking Information
This news release contains certain "forward-looking information" and "forward-looking statements"
(collectively "forward-looking statements") within the meaning of applicable securities legislation.
Forward-looking statements are frequently, but not always, identified by words such as "expects",
"anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or
statements that events, conditions, or results "will", "may", "could", or" should" occur or be
achieved. All statements, other than statements of historical fact, included herein, without
limitation, statements relating the closing of the Non-Brokered Private Placement, TSX-V approval
of the Non-Brokered Private Placement, the use of proceeds with respect to the Offering, and the
results of the mineral resource estimate on the project are forward-looking statements. There can
be no assurance that such statements will prove to be accurate, and actual results and future
events could differ materially from those anticipated in such statements. Forward-looking
statements reflect the beliefs, opinions and projections on the date the statements are made and
are based upon a number of assumptions and estimates that, while considered reasonable by
Nevada King
, are inherently subject to significant business, economic, competitive, political and
social uncertainties and contingencies. Many factors, both known and unknown, could cause actual
results, performance or achievements to be materially different from the results, performance or
achievements that are or may be expressed or implied by such forward-looking statements and the
parties have made assumptions and estimates based on or related to many of these factors. Such
factors include, without limitation, the ability to complete proposed exploration work given the
global COVID-19 pandemic, the results of exploration, continued availability of capital, and
changes in general economic, market and business conditions. Readers should not place undue
reliance on the forward-looking statements and information contained in this news release
concerning these items.
Nevada King
does not assume any obligation to update the forward-
looking statements of beliefs, opinions, projections, or other factors, should they change, except as
required by applicable securities laws.
SOURCE
Nevada King Gold Corp.
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For further information:
contact Collin Kettell at [email protected] or (845) 535-1486
CO: Nevada King Gold Corp.
CNW 08:51e 12-MAY-23