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NuLegacy Gold Corp. (TSXV:NUG,OTCQX:NULGF) announced that it’s entered into an agreement under which it will acquire Barrick Gold Corp.’s (TSX:ABX,NYSE:ABX) 30-percent working interest in the Nevada-based Redhill property. Redhill hosts the Iceberg gold deposit.
NuLegacy Gold Corp. (TSXV:NUG,OTCQX:NULGF) announced that it’s entered into an agreement under which it will acquire Barrick Gold Corp.’s (TSX:ABX,NYSE:ABX) 30-percent working interest in the Nevada-based Redhill property. Redhill hosts the Iceberg gold deposit.
When the deal closes, Barrick will become NuLegacy Gold’s largest shareholder.
As quoted in the press release:
As of the date hereof, NuLegacy holds a 70% working interest in the Property through a joint venture with Barrick.
In exchange, NuLegacy will issue 32 million shares to Barrick at a deemed price of C$0.125 per share, and grant a 2% net profits interest royalty from commercial production on the Property.
Barrick has the right to nominate one director to NuLegacy’s board and participate pro rata in all future issuances of shares or convertible securities.
Barrick has agreed to provide NuLegacy with certain stand still and voting restrictions in favour of NuLegacy in respect of the shares for a period of two years, subject to certain conditions.
Alex Davidson, director of NuLegacy Gold, commented:
We are pleased that Barrick has entrusted the advancement of this exciting undeveloped gold prospect in Nevada to NuLegacy.
Click here to read the full NuLegacy Gold Corp. (TSXV:NUG,OTCQX:NULGF) press release.