NexGold’s Goldboro gold property in Nova Scotia. (Archived image courtesy of Signal.)
NexGold Mining has secured a $24-million royalty agreement with Appian Capital Advisory and signed a non-binding deal for as much as $175 million in project financing to advance its Goldboro gold project in Nova Scotia, Canada.
Appian will pay NexGold upfront cash for a 2.9% net smelter return (NSR) on all minerals from Goldboro until 1.25 million ounces of gold or gold equivalent are produced. After that threshold, the royalty will apply only to gold. NexGold can repurchase 1.9% of the royalty under certain conditions.
The company said proceeds will go toward repaying a $12-million debt facility with Nebari and buying back a 0.6% NSR, leaving NexGold debt-free. The deal is expected to close by the end of September, pending customary approvals.
NexGold also signed a letter of intent with Appian for up to $175…
