Nexus GOLD Raises $3,000,000 IN Private Placement
NEXUS GOLD CORP.
Suite 720, 700 West Pender Street
Vancouver, BC V6C 1G8
Telephone: 604.558.1920
NEWS RELEASE
NEXUS GOLD RAISES $3,000,000 IN PRIVATE PLACEMENT
Placement fully subscribed
Due to demand, Company announces follow-on private placement
Sandstorm Gold Ltd (TSX: SSL) takes 17.3% ownership stake in Nexus
Vancouver, Canada – May 24, 2018 - Nexus Gold Corp. (“Nexus” or the “Company”) (TSX-V: NXS, OTC: NXXGF,
FSE: N6E) is pleased to announce that it has closed its non-brokered private placement (the “Private Placement”)
of 20,027,123 units (each, a “ Unit”), at a price of $0.15 per Unit, for gross proceeds of $3,004,068. Each Unit
consists of one common share of the Company, and one-half-of-one common share purchase warrant (each
whole warrant, a “ Warrant”). Each whole Warrant is exercisable to acquire one additional common share of
the Company at a price of $0.25 per share for a period of twelve months.
The Private Placement was fully-subscribed, and due to strong demand, the Company intends to complete a
further offering (the “Follow-On Private Placement”) of up to 6,000,000 units (each, a “ Follow-On Unit”), at a
price of $0.25 per Follow-On Unit, for gross proceeds of up to $1,500,000. Each Follow-On Unit will consist of
one common share of the Company, and one common share purchase warrant (each, a “Follow-On Warrant”).
Each Follow-On Warrant will be exercisable to acquire one additional common share of the Company at a price
of $0.35 per share for a period of twelve months from the date of issue. Completion of the Follow-On Private
Placement remains subject to the approval of the TSX Venture Exchange.
In connection with completion of the Private Placement, the Company has paid cash commissions of
$113,954.46, and issued 759,696 share purchase warrants (each, a “ Finders’ Warrant”) to certain persons who
have introduced subscribers to the Company. Each Finders’ Warrant is exercisable to acquire an additional
common share of the Company on the same terms as the Warrants comprising the Units. All securities issued
in connection with the Private Placement are subject to a four-month-and-one-day statutory hold period.
Pursuant to National Instrument 62-103 - The Early Warning System and Related Take Over Bid and Insider
Reporting Issues, Sandstorm Gold Ltd. (TSX: SSL) (“ Sandstorm”) acquired an aggregate of 6,000,000 common
shares of Nexus and 3,000,000 Warrants through the Private Placement.
With the acquisition Sandstorm now holds an approximately 17.3% of the outstanding common shares.
Sandstorm is only entitled to exercise, from time to time, such number of Warrants held by it such that, after
the applicable exercise, the number of common shares of Nexus then owned by Sandstorm and its affiliates shall
not exceed 19.99% of the then issued and outstanding shares.
The acquisition by Sandstorm was effected for investment purposes. Sandstorm may from time to time acquire
additional securities of Nexus, dispose of some or all of the existing or additional securities it holds or will hold,
or may continue to hold its current position. The early warning report, as required under National Instrument
62-103, contains additional information with respect to the foregoing matters and will be filed by Sandstorm on
Nexus’ SEDAR profile at www.sedar.com. In connection with completion of the Private Placement, the Company
has agreed to grant to Sandstorm a 1.0% net smelter returns royalty on production from the Company’s
Bouboulou, Niangouela and Rakounga concessions.
About the Company
Nexus Gold is a Vancouver-based gold exploration and development company operating primarily in Burkina
Faso, West Africa. The company is currently concentrating its efforts on establishing a compliant resource oat
one or more of it’s three current projects. The 38-square km Bouboulou project comprises no less than five
established gold zones contained within three separate 5km gold trends. The adjacent 250-square km Rakounga
gold concession extends the Bouboulou gold trends and currently contains three drill tested zones of
mineralization. The Niangouela gold concession is a 178-square km project featuring high-grade gold occurring
in and around a primary quartz vein and associated shear zone approximately one km in length.
On behalf of the Board of Directors of
NEXUS GOLD CORP.
Alex Klenman
Chief Executive Officer
604-558-1920
www.nexusgoldcorp.com
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 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.