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Nutmeg Mountain (Strategic Investment)

STRATEGIC INVESTMENT

Overview:

Nutmeg Mountain is located in Western Idaho approximately 80 kilometers north-northwest of Boise and approximately 20 kilometers east of Weiser, Idaho. The project is well-located relative to road, power and water infrastructure.

Nutmeg Mountain is a low-sulphidation epithermal gold-silver deposit with geology similar to that of several other Western USA epithermal deposits. Nutmeg Mountain has seen over 70,000 meters of historical drilling prior to 2012 with 934 core, RC, and rotary holes.

The Project was fully acquired by NevGold Corp. from GoldMining Inc. on January 18, 2024. The transaction realized an attractive rate of return for GoldMining, with total consideration received being $9.0 million for the Project, which was acquired in 2020 for consideration of $1.15 million.

Going forward, NevGold is required to make additional contingent payments to the Company of up to $7.5 million pursuant to the Option Agreement, payable in cash or shares at NevGold’s election as follows:

  • $0.5 million on announcement or filing of a Preliminary Economic Assessment in respect of the Project;
  • $2.5 million on announcement or filing of a Preliminary Feasibility Study in respect of the Project; and
  • $4.5 million on announcement or filing of a Feasibility Study in respect of the Project.

The transaction allowed the GoldMining management team to crystallize value while remaining focused on unlocking value and advancing its other assets throughout North and South America.

Following the transaction, GoldMining is the largest shareholder of NevGold, holding approximately 29.4% of the outstanding NevGold Shares. This provides the Company continued exposure to the potential upside of Nutmeg Mountain, as well as NevGold’s other assets in Nevada and British Columbia.

Refer to GoldMining Inc News Release dated January 19, 2024

Visit NevGold Corp. Website.

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