NexGold Announces US$24 Million Royalty and Non-Binding LOI for up to US$175 Million in Project Financing for the Advancement of the Goldboro Gold Project

Core Points - NexGold Mining Corp. has entered into a royalty agreement with Appian Capital Advisory Limited for its Goldboro gold project, receiving US$24 million for a 2.9% net smelter returns royalty on minerals produced until 1,250,000 ounces of gold or equivalent is reached, after which it will only cover gold production [2][5][6] - The company has also signed a non-binding letter of intent for a senior secured credit facility of up to US$175 million from Appian for the development of the Goldboro Gold Project [3][12] Royalty Transaction Details - The royalty agreement includes a US$24 million upfront payment and a 2.9% net smelter returns royalty on all minerals produced until the threshold is met, after which it will only apply to gold [5][6] - The company retains the option to buy back 1.9% of the royalty, subject to certain conditions, and plans to use the proceeds to pay off existing debt and advance the project [6][8] - The transaction is expected to close by the end of September 2025, pending customary closing conditions [11] Project Financing - The non-binding letter of intent with Appian outlines a potential senior secured credit facility of up to US$175 million for the Goldboro Gold Project [3][12] - The completion of the project financing is subject to negotiation and execution of definitive transaction documents and board approvals from both parties [13] Strategic Partnership - The partnership with Appian is seen as a strategic move to secure non-dilutive capital for project advancement and to improve the company's balance sheet [4][6] - Appian has conducted extensive due diligence on the Goldboro Gold Project, indicating confidence in the project's potential [4]