Nexus GOLD Options Interest IN Rakounga GOLD Project FOR $2.25 Million IN Cash and Work Commitments
NEXUS GOLD CORP.
Suite 802, 750 West Pender Street
Vancouver, BC, V6C 2T8
604-558-1919
NEWS RELEASE
NEXUS GOLD OPTIONS INTEREST IN RAKOUNGA GOLD PROJECT FOR $2.25 MILLION
IN CASH AND WORK COMMITMENTS
Vancouver, Canada – December 4, 2019 - Nexus Gold Corp. (“Nexus” or the “Company”) (TSX-V: NXS,
OTCQB: NXXGF, FSE: N6E) is pleased to announce that it has entered into a property option agreement
(the “Option Agreement”) with Kruger Gold Corp. (“ Kruger”), a privately held arms’-length company,
pursuant to which the Company has agreed to grant Kruger the right to acquire a seventy-five percent
interest in the Rakounga Gold Project, located in Burkina Faso, West Africa (the “Rakounga Project”).
The Rakounga Project consists of an exploration permit totaling a 250 square kilometer area, adjacent
to the Company’s Bouboulou gold concession, and has been the subject of prior exploration work by
the Company.
Kruger can acquire the interest in the Rakounga Project by completing a series of cash payments
totaling Cdn$1,000,000 and incurring expenditures of at least Cdn$1,250,000 in the development of
the Rakounga project over a five-year term. During the term, Kruger will assume responsibility for all
operations being conducted on the Rakounga Project.
“The option with Kruger Gold represents an important milestone for Nexus as it demonstrates the
ability to monetize projects in our portfolio,” said President and CEO, Alex Klenman. “The incubation
and monetization of select projects is a strategic objective for us. By generating income streams we
can adopt a more self-sustaining business model, one that puts us in a better position to concentrate
more of our resources on exploration efforts at our flagship projects,” continued Mr. Klenman.
The Company continues to control the Rakounga Project through a property option agreement (the
“Underlying Option ”) entered into with the underlying owner of the project, Belemyida SA (the
“Underlying Owner”). During the term of the Option Agreement, the Company will remain responsible
for maintaining the Underlying Option in good standing. In connection with the entering into of the
Option Agreement, the Company has reached an agreement with the Underlying Owner to amend
certain remaining cash payments and share issuances required pursuant to the Underlying Option. In
order to complete the acquisition of the Rakounga Project, the Company will now be required to pay
US$370,000, in a series of payments ending on November 30, 2024, and issue 750,000 common shares,
in a series of share issuances ending on August 30, 2021. These amounts do not include previous
payments and share issuances made to the Underlying Owner under the original terms of the
Underlying Option.
Completion of the amendment to the Underlying Option remains subject to the approval of the TSX
Venture Exchange. The transaction contemplated by the Option Agreement cannot proceed until such
approval has been obtained. All securities issuable to the Underlying Owner, in connection with the
Underlying Option, will be subject to a four-month-and-one-day statutory hold period in accordance
with applicable securities laws.
The Rakounga Project is subject to a one percent net smelter returns royalty in favour of the Underlying
Owner, as well as a further one percent royalty in favour of Sandstorm Gold Ltd. (“ Sandstorm”).
Pursuant to the terms of the Option Agreement, following the acquisition of an interest in the Rakounga
Project, Kruger has agreed to take responsibility for a portion of the royalties based on its proportionate
interest in the project. The assumption of royalty obligations owing to Sandstorm remains subject to
the finalization of a royalty acknowledgment agreement to be entered into between Sandstorm and
Kruger.
Figure 1: Rakounga Gold Project lower left, located along active gold belts and proven mineralized trends
About the Company
Nexus Gold is a Canadian-based gold development company with an extensive portfolio of nine
exploration projects in West Africa and Canada. The Company’s West African-based portfolio totals
over 560-sq kms (56,000+ hectares) of land located on active gold belts and proven mineralized trends,
while it’s 100%-owned Canadian projects include the McKenzie Gold Project in Red Lake, Ontario, the
New Pilot Project, located in British Columbia's historic Bridge River Mining Camp, and three
prospective gold-copper projects (3,300-ha) in the Province of Newfoundland. The Company is focusing
on the development of several core assets while seeking joint-venture, earn-in, and strategic
partnerships for other projects in its growing portfolio.
For more information please visit www.nexusgoldcorp.com.
On behalf of the Board of Directors of
NEXUS GOLD CORP.
Alex Klenman
President & CEO
604-558-1920
www.nexusgoldcorp.com
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. This news release
may contain forward-looking statements. These statements are based on current expectations and assumptions
that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in
the management discussion and analysis section of our interim and most recent annual financial statement or
other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do
not assume any obligation to update any forward-looking statements, except as required by applicable laws.