What SGNL's Sale of Tile Cove for $4M Means for NEXG Sale of Tile Cove Project for $4.0M in Total Compensation for Signal Gold (Soon to be Acquired by NexGold Mining (NEXG.v NXGCF)
Yesterday, Signal Gold (SGNL.to SGNLF) announced that it was signed a share purchase agreementwith FireFly Metals Ltd. for the sale of its Tilt Cove Project in Newfoundland.
Through this transaction, FireFly will acquire 100% of Tilt Cove Gold Corp., which owns all rights to the project for $570,000 in cash and 2,317,869 FireFly shares valued at $2.5 million. Further, Signal Gold is also entitled to a $1 million milestone payment if FireFly announces a mineral resource estimate of at least 500,000 gold equivalent ounces at 1.0 g/t.
Notably, this sale allows Signal Gold to focus on its Goldboro Project in Nova Scotia and comes prior to Signals merger with NexGold Mining (NEXG.v NXGCF).
Set to create one of Canada's most advanced near-term gold developers, this merger will result in NEXG having a combined resource of 4.7 million gold ounces and a plan to achieve 200,000+ ounces of annual production.
Both NEXG's Goliath Property and SGNL's Goldboro Property have significant growth potential across a combined 60,000 hectares of land with potential for further discoveries along strike, at depth and through new discoveries.
Significantly, the sale of Tile Cove adds at least another $3 million on top of the $17 million that NEXG is currently raising, putting the company in a strong financial position.
For more information on the merger, refer to this deep dive: https://www.reddit.com/r/smallstreetbets/comments/1gaowrg/nexgold_nexgv_signal_gold_sgnl_share/
Full News Release: https://www.accesswire.com/938509/signal-gold-announces-the-sale-of-the-tilt-cove-project-to-firefly-metals-for-40-million-in-total-compensation
Posted on Behalf of NexGold Mining Corp.