NexGold Announces Closing of US$24 Million Royalty

Executive Summary

• NexGold Mining Corp. closed a US$24 million financing with Appian Capital Advisory for a 2.9% net smelter returns royalty on its Goldboro Gold Project.
• Proceeds were used to retire a US$12 million credit facility and repurchase a 0.6% NSR royalty, leaving the company debt‑free with third parties.
• The royalty includes buyback rights for NexGold (up to 1.0% NSR) and gives Appian participation rights in future project financing and additional stream/royalty offers.

Key Details

• Financing Amount: US$24 million cash received by Goldboro Gold Mine Inc., a wholly‑owned subsidiary of NexGold.
• Royalty Structure: 2.9% net smelter returns (NSR) on all minerals until 1,250,000 oz Au/equiv produced; thereafter only on gold for the life of the project.
• Buyback Option: GGM may repurchase part of the royalty to reduce it to 1.0% NSR for US$29 M within three years of closing, or US$30.5 M up to the fourth anniversary.
• Debt Repayment: Portion of proceeds used to retire an existing US$12 million credit facility with Nebari; also exercised buyback of a 0.6% NSR royalty held by Nebari.
• Debt Position: Post‑transaction, NexGold holds no material third‑party debt.
• Minimum Payments: Minimum payments apply only if construction of the Goliath Gold Complex begins before commercial production at Goldboro; none if Goliath does not start early.
• Appian Participation Rights (3‑year term):
• Right to negotiate up to 50% participation in any project financing for Goldboro construction.
• First right of offer on any future stream or additional royalty interest that NexGold may solicit.
• Corporate Awareness Agreement: The prior marketing agreement with Quantum Ventures Inc. (announced April 10, 2025) has expired and was not renewed.

Notable Quotes

(No direct quotes were included in the release.)