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NevGold Announces C$10M Brokered Private Placement Financing

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  Published in Business and Finance on Thursday, November 6th 2025 at 11:32 GMT by Toronto Star

NevGold Secures C$10 Million Through Brokered Private Placement, Fueling Expansion Plans

NevGold Resources Ltd. (NASDAQ: NVG) announced on March 12, 2024 that it has completed a brokered private placement, raising roughly C$10 million in equity financing. The transaction, conducted through a reputable Canadian brokerage, is expected to strengthen the company’s balance sheet, fund ongoing development of its flagship Chinchilla Gold Mine in the Canadian Shield, and support exploration initiatives in Peru and other prospective sites.

The Deal in Detail

The private placement comprised 5 million common shares and 2 million warrants, priced at C$0.20 per share and C$0.05 per warrant, respectively. Warrant holders may exercise their rights to purchase additional shares at a fixed price of C$0.25 over a five‑year period. The offering is exempt from the full prospectus requirement under the Securities Act of Canada, subject to standard “brokered” exemptions, and will be listed on the Toronto Stock Exchange (TSX) under the symbol NVG.

The transaction was facilitated by CIBC Global Asset Management, a firm that has represented Nevgold in previous capital‑raising activities. Under the agreement, the broker has secured commitments from institutional and retail investors across Canada, the United States, and the United Kingdom. The closing of the placement took place on March 14, 2024, with the funds transferred to Nevgold’s corporate account within 48 hours.

How Nevgold Plans to Use the Proceeds

NevGold’s management emphasized that the proceeds will be allocated across several priority areas:

1. Capital Expenditure at Chinchilla
   The company is moving from the planning stage to construction of the Chinchilla Gold Mine. The C$10 million will cover equipment purchases, site preparation, and infrastructure development. This funding is expected to shorten the projected timeline for bringing the mine to first‑production, currently targeted for Q4 2025.

2. Working Capital and Operational Liquidity
   The capital injection will provide a buffer for day‑to‑day operations, including labor costs, logistics, and supply chain expenses, thereby reducing the company’s reliance on short‑term debt.

3. Debt Reduction
   Nevgold will use a portion of the funds to repay existing lines of credit and other outstanding obligations, improving its debt‑to‑equity ratio and lowering interest expenses.

4. Exploration and Development in Peru
   The company has recently identified a high‑grade porphyry copper‑gold system in the Central Andes. The new capital will finance drilling, resource estimation, and environmental studies necessary to advance the project to feasibility.

5. Strategic Acquisitions and Partnerships
   Management has indicated that the liquidity cushion could enable the pursuit of strategic acquisitions or joint‑venture arrangements with larger mining operators, especially in regions where Nevgold has a foothold.

Company Context and Market Outlook

NevGold Resources Ltd. is a mid‑cap mining company focused on gold and copper assets in North America and South America. Its primary asset, the Chinchilla Gold Mine, is situated approximately 30 km north of Timmins, Ontario, in a region known for high‑grade gold deposits. The mine is currently in the design phase, with preliminary engineering studies already completed. In addition, the company holds exploration licenses in Peru and Canada, with the Peruvian portfolio recently upgraded to a high‑grade porphyry prospect after a series of successful drill results.

The private placement reflects growing confidence in Nevgold’s management team and their strategic approach to development. Analysts note that the company’s debt profile is modest, with total debt standing at C$4.5 million as of December 2023. The new equity injection will more than double its net cash balance, placing the company in a favorable position to meet upcoming capital commitments.

The market has reacted positively to the announcement. NVG shares rose by 7.8 % in pre‑market trading on March 15, 2024, following the news. This uptick follows a broader trend of investor interest in high‑grade Canadian gold projects, fueled by rising global gold prices and a renewed focus on supply‑side fundamentals.

Additional Resources and Links

• Nevgold’s official announcement: https://www.thestar.com/globenewswire/nevgold-announces-c-10m-brokered-private-placement-financing/article_ec6e39f5-a905-5f0f-af42-c538e018eb22.html
• Company website: https://www.nevgoldresources.com/
• CIBC Global Asset Management: https://www.cibc.com/wealth-management.html
• TSX listing details: https://www.tsx.com/companies/nv

The press release also references the “NevGold 2023 Annual Report” and the “Chinchilla Project Feasibility Study 2024” for investors seeking deeper insight into the company’s financial performance and project economics. Both documents are available on the Nevgold website under the Investor Relations section.

Closing Remarks

NevGold’s successful C$10 million brokered private placement demonstrates the firm’s ability to attract capital from a diversified investor base and underscores its commitment to advancing the Chinchilla Gold Mine. By allocating the proceeds across construction, operational needs, debt reduction, and exploration, Nevgold is positioning itself for sustainable growth in a bullish commodity market. Investors and industry observers will watch closely to see how the additional liquidity accelerates project timelines and potentially unlocks further opportunities in the high‑grade gold and copper sectors.