'Big plans ahead, backed by Frank Giustra & Sprott' CEO Interview Summary: NexGold Mining (NEXG.v NXGCF) on Triangle Investor - Big plans ahead, backed by Frank Giustra & Sprott
Marking the first interview since announcing its second merger, NexGold Mining's (NEXG.v NXGCF) CEO, Morgan Lekstrom, joined Triangle Investor to discuss its transaction with Signal Gold to create one of Canada's most advanced near-term gold developers: https://www.youtube.com/watch?v=RxmY3Rzylwk
Expected to be completed in December with the ultimate goal of becoming a premier mid-tier gold developer in Canada, the new company will have a combined 4.7 million gold ounces of measured and indicated resources and a plan to achieve 200,000+ ounces of annual production.
Merger with Signal Gold:
- Merger Synergies: Combines the Goliath Complex (Northwestern Ontario) and Signal’s assets, totaling 6 million ounces of gold (4.7 million M&I). Both projects bring advanced-stage permitting and exploration potential.
- Debt Management: Through partnerships and the flexibility of investors like Nabari, the company restructured significant debt to unlock value.
- Scale & Potential: The two projects are expected to develop concurrently, though not together, allowing for substantial scale and growth.
Future Management Roles
- Kevin Bullock: Current CEO of Signal Gold will become CEO of the combined entity, focusing on business development and market strategy.
- Jeremy Wyeth: Current CEO of Next Gold will transition to COO, focusing on project execution and development.
Goliath Gold Complex
- Overview: Consists of three main projects: Goliath, Goldland, and Miller, with 25 km between two main open pits.
- Drilling & Expansion: Drilling is ongoing to show expansion potential at Goliath and Goldland. The feasibility study focuses on expanding resources and demonstrating growth potential.
- Infrastructure: Well-developed infrastructure with access to highways, power lines, and proximity to a skilled workforce.
- Production Timeline: Expecting shovels in the ground by late 2025 or early 2026, positioning for future gold production.
Financial Position & Strategy
- Current Cash: Approximately $11.5 million in Next Gold, plus $4.5–5 million in Signal. Combined with upcoming financing, the company expects to have over $20 million for operations.
- Monetization Plans: The company plans to monetize non-core assets (e.g., Tilt Cove and Niblack projects) to raise capital without diluting shareholders.
Exploration & Future Plans
- Exploration Focus: Goldboro (Nova Scotia) and Goliath will be the primary focus, with significant expansion potential noted at Goldboro’s West pit.
- Other Assets: Niblack (Alaska) and Tilt Cove (Nova Scotia) offer further monetization potential.
Shareholder Structure & Marketing
- Major Shareholders: Frank Giustra, Sprott Asset Management, and Extract Capital are key backers, along with a significant portion of institutional investors.
- Marketing Approach: Hands-on, with plans for more frequent shareholder updates, town halls, and increased visibility as the merger completes.
With near term news to be expected alongside updates on feasibility studies, and regular corporate communications leading to the transaction closure in December, this merger is one to watch.
Full News Release Detailing the Merger: https://nexgold.com/nexgold-and-signal-gold-announce-merger-to-create-one-of-canadas-most-advanced-near-term-gold-developers-with-a-combined-4-7-million-gold-ounces-of-measured-and-indicated-resources-and-a/
Posted on Behalf of NexGold Mining Corp.