NevGold (NAU.V) has announced it has entered into an agreement with Clarus Securities whereby the latter will be sole agent and bookrunner for a C$10M best efforts placement priced at C$0.65 per unit. Each unit will consist of one common share as well as half a warrant with each full warrant allowing the warrant holder to acquire an additional share at C$0.90 for a period of 24 months.
The proceeds of the financing will be used on the Nutmeg Mountain gold project and Zeus copper projects in Idaho as well as its Limousine Butte gold-antimony project in Nevada. The company published positive metallurgical test results on the antimony portion of the latter with recovery rates ranging from 66% to 92% whereby the acid leaching scenario would produce antimony metal right on site without impacting the anticipated recovery rates of the gold.
NevGold should also publish a gold-antimony resource at Limousine Butte and that will allow us to quantify the amount of (recoverable) antimony and judge its potential to be a by-product credit in a potential mining scenario.
Disclosure: The author has a long position in NevGold. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
