Nevada King arranges $16-million private placement

Executive Summary

• Nevada King Gold Corp. has completed a fully subscribed non-brokered private placement raising approximately $16 million in gross proceeds.
• The financing includes a $10 million strategic investment from Centerra Gold Inc., which acquires a 9.9% stake in Nevada King at $0.21 per share.
• Proceeds will be used to advance exploration at the Atlanta gold mine project, specifically targeting Silver Park, Atlanta South, Atlanta North, and Western Rim, alongside general working capital.

Key Details

• Total Gross Proceeds: Approximately $16 million.
• Strategic Investor: Centerra Gold Inc.
  • Investment Amount: Approximately $10 million.
  • Equity Stake: 9.9% of issued and outstanding common shares.
  • Price: $0.21 per common share (matching the 20-day VWAP on the TSX Venture Exchange).
• Internal Participation:
  • Chairman Collin Kettell and largest shareholder Michael Parker intend to participate to maintain pro rata ownership.
  • Anticipated Gross Proceeds from Internal Participants: Approximately $6 million.
• Use of Proceeds:
  • Regional and reconnaissance exploration at the Atlanta gold mine project.
  • Focus on high-priority targets: Silver Park, Atlanta South, Atlanta North, and Western Rim.
  • General working capital purposes.
• Investor Rights Agreement:
  • Nevada King and Centerra intend to enter a customary investor rights agreement at closing.
  • Centerra granted financing participation rights and information rights, subject to ownership thresholds.
• Closing Conditions:
  • Expected to close in the second quarter of 2026.
  • Subject to regulatory approvals and acceptance by the TSX Venture Exchange.
• Share Terms:
  • Issued pursuant to prospectus exemptions under National Instrument 45-106.
  • Subject to a four-month hold period in Canada.
• Project Resource Data (Atlanta Gold Mine):
  • Measured and Indicated: 1.02 million ounces Au (27.7 million tonnes at 1.14 g/t).
  • Inferred: 99,000 oz Au (3.6 million tonnes at 0.84 g/t).
  • Cut-off Assumptions: $2,200/oz Au and $25/oz Ag.

Notable Quotes

• "This strategic investment from Centerra culminates a lengthy period of due diligence and is a strong endorsement for both the quality and growth potential of the Atlanta gold mine project, as well as for Nevada King's exploration team. With the bolstered treasury, the company is now in a position to advance our ambitious exploration program at Atlanta to truly define the district-scale potential of one of the highest-grade, open-pit, oxide gold projects in Nevada, a top mining jurisdiction in the world. We're excited to welcome Centerra as a new shareholder, a highly reputable and technically strong intermediate gold producer with assets in Nevada and the Great Basin area." — John Sclodnick, Chief Executive Officer