Mentioned:
Centerra Gold is pouring millions of dollars into a gold exploration company listed in Canada. But, why?
What’s happening:
- Nevada King Gold (TSXV: NKG) is raising $16M CAD in a new equity financing round
By the numbers:
- Nevada Gold King will issue approximately 76.2M common shares at $0.21 CAD per share as part of the new funding round
Why it matters:
- Centerra Gold (NYSE: CGAU) will lead the new financing round with a strategic investment of $10M CAD
Going deeper:
- Nevada King Gold’s flagship property is the Atlanta Gold Mine Project located in southeastern Nevada which was a previously producing high grade gold mine with a historical gold resource of roughly 1M ounces
- Nevada King Gold has publicly stated the new growth capital will go towards exploration and a large scale drilling program at the Atlanta Gold Mine Project
The intrigue:
- This is the first time that Centerra Gold has ever taken an equity ownership stake in Nevada King Gold
