| Key Points: – NexGold and Signal Gold merge to create a leading near-term gold developer, aiming for over 200,000 ounces of annual production. – Combined company holds 4.7 million ounces of measured and indicated gold resources and 1.3 million ounces of inferred resources. – The merger will eliminate single-asset risk for both companies and advance growth, subject to shareholder and regulatory approvals. |
NexGold and Signal Gold have announced a merger, aiming to establish a top-tier near-term gold developer. The combined company will focus on advancing NexGold’s Goliath Gold Complex Project and Signal’s Goldboro Gold Project, with both already having Environmental Assessment Approvals in place. The company aims to produce over 200,000 ounces of gold annually from these projects.
The merger brings together significant assets, with a combined 4.7 million ounces of measured and indicated gold resources and 1.3 million ounces of inferred resources between the two companies. Both projects show strong potential for growth. By merging, NexGold and Signal also eliminate the risks associated with being single-asset companies.
The leadership team of the newly merged company will bring together complementary expertise in geology, engineering, finance, and sustainability. Jim Gowans will lead the board as Chairman, with Kevin Bullock serving as CEO, Jeremy Wyeth as COO, and Orin Baranowsky as CFO.
The merger will see NexGold acquire all of Signal Gold’s outstanding shares, with Signal shareholders receiving 0.1244 NexGold shares for each Signal share. Post-merger, NexGold shareholders will own approximately 71% of the company, with Signal shareholders holding the remaining 29%. The merger is still subject to shareholder approval, as well as approvals from the Toronto Venture Exchange and the Toronto Stock Exchange.
Additionally, the companies are planning a non-brokered private placement financing of up to $11.5 million, with NexGold’s board and management expected to subscribe for up to $1.0 million. This financing will provide significant funding to advance both projects toward construction decisions while helping the combined entity deleverage.
