mining

NexGold Mining and Signal Gold to merge

Kitco Media
By Michael McCrae
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(Kitco News) - TORONTO - NexGold  Mining Corp. (TSXV: NEXG) and Signal Gold Inc. (TSX: SGNL)  announced today the two were merging. 

NexGold will acquire all the issued and outstanding common shares of Signal. Each SGNL share will be exchanged for 0.1244 of a NEXG Share. 

NexGold dropped today, falling 3% to 72 cents a share. Signal Gold was up 5.8% to 9 cents. 

The combined entity will have a combined resource base of 4.7 million ounces of measured and indicated gold. The merged entity aims to produce over 200,000 ounces of gold annually.  

The deal combines NexGold's  Goliath Gold Complex in Northern Ontario and Signal’s Goldboro Gold Project in Nova Scotia, both of which are in the advanced stages of permitting. The new company has $11.5 million in financing. 

In a news release, the companies said that the merger will eliminate the single-asset risk when both were apart. Kevin Bullock will be CEO and Jeremy Wyeth will COO of the combined entity.

“This transaction reflects our strategy to target high-value gold projects with significant production potential,” said NexGold President Morgan Lekstrom. 

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Michael McCrae

Michael McCrae is leading Kitco's coverage of the mining sector. McCrae, who has both an MBA and CMA, knows how to build digital media properties. He was co-founder and publisher of MINING.com, an award-winning news site. Before coming to media, McCrae worked in IT and banking. Please reach out: mmccrae@kitco.com or (514) 670-1383. You can also follow him at @michaelmccrae.

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