NexGold Mining and Signal Gold to merge
TORONTO – NexGold Mining and Signal Gold have announced the two were merging. NexGold will acquire all the issued and outstanding common shares of Signal. Each SGNL share will be exchanged for 0.1244 of a NEXG Share.
After the announcement NexGold dropped, falling 3% to 72 cents a share. Signal Gold was up 5.8% to 9 cents. The combined entity will have a combined resource base of 4.7 million ounces of measured and indicated gold. The merged entity aims to produce over 200,000 ounces of gold annually.
The deal combines NexGold’s Goliath Gold Complex in Northern Ontario and Signal’s Goldboro Gold Project in Nova Scotia, both of which are in the advanced stages of permitting. The new company has $11.5 million in financing.
In a news release, the companies said that the merger will eliminate the single-asset risk when both were apart. Kevin Bullock will be CEO and Jeremy Wyeth will COO of the combined entity.
“This transaction reflects our strategy to target high-value gold projects with significant production potential,” said NexGold President Morgan Lekstrom.
