Nexgold Mining closes $24-million (U.S.) financing

Executive Summary

• Nexgold Mining Corp. closed a US$24 million financing for a 2.9% net smelter return (NSR) royalty on its 100%-owned Goldboro gold project with Appian Capital Advisory Ltd.
• Proceeds were used to retire the existing US$12 million credit facility and to exercise a buyback of a 0.6% NSR royalty, leaving Nexgold with no material third‑party debt.
• The royalty includes optional repurchase rights (down to 1.0% NSR) and gives Appian participation rights in future project financing for up to three years.

Key Details

• Financing amount: US$24 million cash received by Goldboro Gold Mine Inc., a wholly‑owned Nexgold subsidiary.
• Royalty terms:
• Initial royalty rate – 2.9% NSR on all minerals until cumulative production reaches 1.25 M oz Au (or Au‑eq); thereafter 2.9% NSR on gold only for the life of the project.
• Buyback option – Nexgold may repurchase part of the royalty to reduce it to 1.0% NSR: US$29 million payable within three years of closing, or US$30.5 million thereafter up to the fourth anniversary.
• Debt repayment: Portion of proceeds used to retire an existing US$12 million credit facility held by Nebari.
• Additional royalty actions: Nexgold exercised its buyback on a separate 0.6% NSR royalty previously held by Nebari, eliminating material third‑party debt.
• Minimum payments: No minimum royalty payments are required unless the Goliath gold complex construction starts before commercial production is achieved.
• Appian participation rights (3‑year term):
• Right to negotiate up to 50% of any project financing for the construction of the Goldboro project.
• First right of refusal on any additional stream or royalty interest Nexgold may wish to sell during this period.
• Corporate awareness agreement: The prior marketing agreement with Quantum Ventures Inc. (announced April 10, 2025) has expired and will not be renewed.

Notable Quotes

(No direct quotes were provided in the release.)