Signal Gold in the local news
Ken G shared this with me...
Signal Gold merger boosts prospects for Goldboro Gold Project
By Alec Bruce, Local Journalism Initiative Reporter
GOLDBORO — With a new equity partner and "manageable debt" structure tentatively approved, the Toronto-based mining company that's been exploring in Guysborough County since 2017 expects to make a construction decision for its Goldboro project by mid-2025.
"It's a fantastic outcome," Kevin Bullock, president and CEO of Signal Gold, told The Journal last week after news that Signal and NexGold Mining Corp. of Toronto had agreed to merge under the name NexGold. "This will give [us] the capacity to move projects forward with a combined, highly experienced team... We remain committed."
Bullock, who becomes president and CEO of the new company once the deal closes in early December, explained that NexGold Mining's $11.5 million equity infusion will help reduce Signal Gold's US$20 million debt — which had become a financial albatross around the company's neck — to international investment firm Nebari to a "very reasonable and manageable" US$12 million.
This, in turn, will allow the new company to concentrate on obtaining the final approvals for the Goldboro project, including "our Federal Schedule 2 Amendment and Fisheries Offsetting plan, as well as our provincial Industrial approval by mid next year... and make
a construction decision following that," he said, adding: "We will still have the Nova Scotia subsidiary called Goldboro Gold and all of the people will remain the same in Nova Scotia." According to a news release, the deal is also good for NexGold Mining's Goliath Gold Complex Project in northern Ontario. "The combination of the Goliath and Goldboro Projects and the experience and skills of the combined team positions the company uniquely with two of the next few gold mines to be built in Canada, as both projects are already significantly advanced in permitting," noted NextGold Mining's former CEO (NexGold's incoming Chief Operating Officer) Jeremy Wyeth. "The synergies in the teams allows the new NexGold executive to specifically focus on core areas of expertise and competence as we progress towards a construction decision on one of our assets and continue to advance project financing discussions. We are well-positioned to become the next mid-tier gold producer in Canada." Last month, Signal — which received its provincial environmental assessment approval for the Goldboro project in 2022 — accepted the provincial government's Crown Land Lease and Licence Letter of Offer on 2,265 acres of Crown land in the area.
This provides us with the ability to build infrastructure required for an operating mine," Bullock said at the time. "It spells out how we may use the land and the conditions associated with that right."
Signal has estimated it will create between 200 and 350 direct, full-time jobs during mine construction and operations.