NV Gold Closes $862,000 Private Placement and Welcomes Eric Sprott as Significant Shareholder
Vancouver, British Columbia – NV Gold Corporation (TSX.V: NVX) (the “Company”) announced today that it has closed on subscriptions for 4,310,000 Units at CDN$0.20 per Unit of the non-brokered private placement of Units of the Company originally announced on February 16, 2017, for gross proceeds of CDN$862,000. The largest subscriber to the private placement, which acquired 2,500,000 Units, is a corporation owned by Eric Sprott.
Each Unit consists of one Share and one-half of one Warrant exercisable at CDN$0.30 per share until February 27, 2019. The Units and any shares of the Company issued on exercise of the Warrants forming part of the Units are subject to a hold period expiring on June 28, 2017.
Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired 2.5 million Units pursuant to the private placement, making him the indirect owner of approximately 9.0% of the issued and outstanding common shares of the Company on a non-diluted basis, and approximately 12.9% assuming only the Warrants acquired by him are exercised. The above percentages are calculated based on 27,717,582 common shares issued and outstanding after giving effect to the private placement. Prior to the Financing, Mr. Sprott owned no shares of the Company, directly or indirectly.
John Watson, CEO of the Company, subscribed to the Placement for CDN$12,000 and was issued 60,000 Units.
The proceeds of the Placement will be used by the Company for the acquisition and advancement of new properties and existing properties of the Company and for general working capital. The Company paid finder’s fees totaling CDN$16,800 in respect of subscriptions under the private placement.
The Units were acquired by Mr. Sprott, through 2176423 Ontario Ltd. for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company either on the open market or through private acquisitions or sell securities of the Company either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of 2176423 Ontario Ltd.’s early warning report will appear on the Company’s profile on SEDAR and may also be obtained by calling (416) 362-7172 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J2).
About NV Gold Corporation
NV Gold is junior exploration company based in Vancouver, British Columbia that is focused on delivering value through mineral discoveries utilizing the prospector generator model. Leveraging its highly experienced in-house technical knowledge, NV Gold’s geological team intends to use its geological database, which contains a vast treasury of field knowledge spanning decades of research and exploration, combined with a portfolio of mineral properties in Nevada, to create opportunities for lease or joint venture. NV Gold plans to aggressively acquire additional land positions for the growth of its business.
On behalf of the Board of Directors,
(sgd.) “John E. Watson”
President and CEO
For further information, visit the Company’s website at www.nvgoldcorp.com or contact:
John E. Watson,
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the proposed uses of such funds, the potential to create opportunities for lease or joint venture and other future plans and objectives of the Company, including exploration plans, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include regulatory issues, market prices, availability of capital and financing, general economic, market or business conditions, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.