NeXGold Mining Corp NXGCF

RedCloud Gives NEXG Speculative BUY w/ $1.80 Price Target

[1StockInformer]

In a report released today, RedCloud Securities initiated coverage on NeXGold Mining Corp. (Ticker: NEXG.v or NXGCF for US investors), highlighting the company's strategy to "drill, develop, and deal" its way to becoming a mid-tier gold producer. 

As highlighted in the report, NeXGold emerged from a July 2024 merger between Treasury Metals and Blackwolf Copper and Gold with enhanced leadership, a stronger balance sheet, and improved capital market capabilities.

This allows the company to fast-track its key projects, primarily the Goliath Gold Project (GGP), expand its resource potential, and seek additional gold development projects to grow its production base.

Key elements of NEXG's Strategy highlighted in the report include:

• Leadership and Strategic Vision: NEXG benefits from seasoned mine operators and the strategic insight of key investors such as billionaire **Frank Giustra**. The merger has positioned the company for growth, enhancing its operational and financial capacity.

• Goliath Gold Project Fast-Track: The GGP consists of three deposits—Goliath, Goldlund, and Miller—hosting 1.3M oz in reserves and a total resource base of 3.0M oz. The company expects to complete a Feasibility Study by Q1 2025, start construction in early 2026, and target production by 2028.

• Exploration and Resource Expansion: NEXG has initiated a 25,000m drill program designed to expand the resource base of its existing deposits and identify new targets across its 65km stretch of prospective land.

• Community and Environmental Support: The project has federal environmental approval and a relationship agreement with the Wabigoon Lake Ojibway First Nation, setting a foundation for ongoing collaboration.

NeXGold’s portfolio also includes the advanced Niblack VMS project in Alaska and other exploration properties.

RedCloud's report gives NEXG a Speculative BUY rating and sets a target price of C$1.80/share (current share price C$0.67), driven by the company's assets and potential for growth.

Full report here: https://cdn-ceo-ca.s3.amazonaws.com/1jdm036-20240906-NEXG-Initiation-2.pdf

Posted on behalf of NeXGold Mining Corp.

[andre171]

The financing hypothesis adopted by Redcloud would result in the creation of 85.7M shares at a price of 1.75 CAD. This dilution of 112% or 87% (diluted) would still be acceptable, but the share price would have to increase by 161% in 18 months! It is to be hoped that obtaining permits and very good exploration results will help, but this is far from a foregone conclusion.  If available