NexGold Announces Closing of C$112.5 Million Bought Deal Private Placement of Units and Flow-Through Shares
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On October 31, 2025, NexGold announced the closing of an upsized bought deal private placement for total gross proceeds of C$112.5 million. The financing consisted of: - 69,445,000 units sold at C$1.44 per unit for gross proceeds of C$100.0 million. Each unit consists of one common share and one common share purchase warrant. Each warrant allows the holder to purchase one common share at an exercise price of C$1.92 for 24 months. - 7,944,000 flow-through common shares sold at C$1.58 per share for gross proceeds of C$12.55 million.
The proceeds will be used to fund the development of the Goldboro open-pit gold project in Nova Scotia, for general corporate and working capital purposes, and to incur qualifying Canadian exploration expenses. The total amount raised is slightly higher than the C$110 million initially announced on October 14, 2025, due to an increase in the flow-through share component.
This financing is a significant and positive milestone for NexGold. The C$112.5 million raised provides the company with a substantial treasury to aggressively advance its flagship Goldboro Gold Project towards a construction decision.
Positive Impacts: - Financial De-risking: This capital raise removes any near-term financing uncertainty and fully funds the company through critical upcoming milestones, including an updated Mineral Resource Estimate and an updated Feasibility Study for Goldboro. - Strong Investor Demand: Closing a financing larger than initially announced indicates strong institutional and investor interest, validating the company's strategy and the quality of the Goldboro project. - Execution Capability: Coming on the heels of major permitting achievements and a successful royalty financing in September, this event demonstrates management's ability to execute its strategic plan of systematically de-risking and advancing its assets.
Negative Impacts: - Significant Dilution: The offering introduces approximately 77.4 million new shares, representing ~49% dilution to existing shareholders on a basic basis. - Warrant Overhang: The deal adds another 69.4 million warrants to the capital structure. The total number of outstanding warrants is now over 112 million, which will create a significant overhang on the stock and could temper share price appreciation as the price approaches the various exercise levels.
Overall Assessment: While the dilution is substantial, it is a necessary step for a development-stage company. The enormous benefit of securing a full treasury to advance a key asset to a construction-ready state far outweighs the negative impact of the dilution. This financing transforms NexGold's balance sheet and firmly places it on the path to becoming a producer. The market's reaction, with the stock price holding near the C$1.44 financing level after an initial gap down, suggests acceptance of these terms as fair for the de-risking achieved.
NexGold Mining Corp. is a Canadian gold development company formed through a series of transactions, most notably the acquisition of Signal Gold in December 2024. The company controls two advanced-stage, multi-million-ounce gold projects: the Goliath Gold Complex in Ontario and the Goldboro Gold Project in Nova Scotia.
Based on the chronological news flow throughout 2025, the Goldboro Gold Project in Nova Scotia is the company's clear flagship asset being fast-tracked towards production. The company has focused its 2025 exploration efforts, permitting advancements, and recent major financing activities on this project. Goldboro is an open-pit project which received its key provincial Industrial Approval in August 2025 and is poised for an updated Mineral Resource and Feasibility Study.