Albert Matter's NuLegacy Gold Corp. (NUG) closed unchanged at 1.5 cents on 7.28 million shares. Last week, the company said it was offering 100 million shares at 2.5 cents apiece, seeking $2.5-million to cover a 2023 drill program at its Red Hill property in the Cortez district of central Nevada. That will consume over half the proceeds, as the program carries a $1.75-million budget. The rest of the cash is for general expenses, including management fees and salaries.
Today, one member of the management team said he will be participating in the placement: Mr. Matter, CEO, said he "made available" about 10 million shares for proceeds of about $168,000 -- and thus he will subscribe for 6.7 million shares, also worth $168,000. (Yes, those volume blips on Sept. 12 and Sept. 15 were the result of Mr. Matter blowing off about 10 million shares at an average of 1.68 cents apiece. Prior to his selling, NuLegacy had been bumbling along at 2.5 cents.) Not to worry, not only will Mr. Matter be buying shares at 2.5 cents each, but he will also purchase 3.3 million additional shares to restore his holding to 10 million shares.
NuLegacy says the drilling is expected to start in mid-October, within a week or two of the placement closing. "Hunting for elephants in Nevada is a unique enterprise," Mr. Matter gushed, noting that the hunt is "mostly undertaken by the 'big game hunters'," among which he mentioned Barrick Gold Corp. (ABX: $22.52) and Newmont Corp. (NGT: $54.59).