Nevada KING Announces Terms of Fully Subscribed $4,500,000 Financing with Lead Order from Collin Kettell /This Press Release is Not Intended FOR Release OR Dissemination IN the
NEVADA KING ANNOUNCES TERMS OF
FULLY SUBSCRIBED $4,500,000 FINANCING
WITH LEAD ORDER FROM COLLIN KETTELL
/THIS PRESS RELEASE IS NOT INTENDED FOR RELEASE OR DISSEMINATION IN
THE
UNITED STATES
/
VANCOUVER, BC
,
May 18, 2022
/CNW/ -
Nevada King Gold Corp.
(TSXV: NKG) (OTCQX:
NKGFF) ("
Nevada King
" or the "
Company
") is pleased to announce that it is proceeding with a non-
brokered private placement financing (the "
Private Placement
") through the issuance of 10,000,000
common shares (the "
Shares
") of the Company at a price of
$0.45
per Share for aggregate gross
proceeds of
$4,500,000
. The Private Placement is fully allocated and is expected to close on or
before
June 10, 2022
.
Highlights
Company Founder & Chief Executive Officer
Collin Kettell
is subscribing for
$2,250,000
of the
Private Placement, which will increase his ownership in the Company to 15.5% post-financing.
The remainder of the proposed private placement is being subscribed for by a group of existing
shareholders and strategic, high net worth investors.
Upon completion of the Private Placement,
Nevada King
will have working capital in excess of
$27-million
to support drilling of multiple targets on its properties along the Battle Mountain
Trend, including follow up drilling at the Atlanta Mine and at the Lewis, and Iron Point project
areas.
Collin Kettell
, Chief Executive Officer of
Nevada King
, stated: "Exploration is a high-risk, high-reward
business and access to capital is a prerequisite to a successful outcome. We are extremely
fortunate to have a supportive group of stakeholders that share in management's vision of unlocking
value along the Battle Mountain Trend."
Details Regarding the Financing
Closing of the Private Placement is subject to customary conditions, including, but not limited to, the
receipt of all necessary approvals, inclusive of the approval of the TSX Venture Exchange.
The Shares issued pursuant to the Private Placement will be subject to a statutory hold period
expiring four months and one day from from the date of issuance of such securities. The proceeds of
the Private Placement will be used to advance
Nevada King's
development and exploration stage
assets and for other general corporate purposes.
The majority of the Private Placement is expected to be raised from existing shareholders and
current directors, executive officers, business associates and employees, some of whom are
insiders of the Company. Any participation by insiders in the Private Placement would constitute a
"related party transaction" as defined under Multilateral Instrument 61-101 Protection of Minority
Security Holders in Special Transactions ("
MI 61-101
"). However, the Company expects that the
Private Placement will be exempt from the formal valuation and minority shareholder approval
requirements of MI 61-101 as neither the fair market value of the Shares subscribed for by the
insiders, nor the consideration for the Shares paid by such insiders, will exceed 25% of the
Company's market capitalization. A material change report in connection with the Private Placement
is expected to be filed less than 21 days before the closing of the Private Placement. This shorter
period is reasonable and necessary in the circumstance as the Company wishes to complete the
Private Placement in a timely manner.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended,
and may not be offered or sold in
the United States
absent registration or an applicable exemption
from the registration requirements. This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such
offer, solicitation or sale would be unlawful.
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 through to the present day 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 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.
Tabulation of 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.
All statements, other than statements of historical fact, included herein, without limitation,
statements relating the future operations and activities of
Nevada King
, are forward-looking
statements. 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. Forward-looking statements in this news release relate to, among other
things, closing of the Private Placement, receipt of all necessary regulatory approvals in
connection therewith, use of proceeds from the Private Placement, acquisition of additional mineral
claims, exploration plans and the Company's ability to potentially expand mineral resources and
the impact thereon. 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:
Collin Kettell at [email protected] or (301) 744-8744
CO: Nevada King Gold Corp.
CNW 07:30e 18-MAY-22