On April 07, 2016, the Company announced a strategic investment in NuLegacy, a Toronto Venture-listed exploration Company (TSXV:NUG) currently drilling in Eureka County, Nevada, United States. At the time, the Company subscribed to 47,663,228 shares of NuLegacy at a price of C$0.14 per share through a private placement which equated to a 19.9% equity interest.
The terms of the agreement with NuLegacy included the following provisions provided that the Company own not less than 5% of the issued and outstanding common shares of NuLegacy:
- the right to appoint one director to NuLegacy’s board of directors and the right to include one nominee on the slate of the proposed board in any subsequent shareholders’ meeting to elect directors of NuLegacy;
- the right to request the formation of a Technical Committee of NuLegacy consisting of at least three members with the appointment of one representative by the Company;
- anti-dilution rights allowing it to maintain its equity ownership interest in NuLegacy;
- the right to participate in any future equity financings of NuLegacy to acquire up to 19.9% of the then issued and outstanding common shares of NuLegacy;
- the sole right of first offer if Nulegacy wishes to establish a joint venture arrangement relating to the advancement of the Iceberg Project;
- the right to be consulted on any third party non-equity financing, a royalty or stream arrangement, a joint venture arrangement, a sale of all or substantially all of the assets, or any other business combination involving NuLegacy.
NuLegacy currently owns the Iceberg Project (~60 square kilometres) and have an option agreement in the adjacent Idaho Resources Property (~ 38 square kilometres). The Iceberg Property is located south from Barrick’s Cortez Hills operation and Goldrush property. The Iceberg Project has geology similar to that which hosts the existing three Carlin-type gold deposits in the Cortez Trend.
NuLegacy exploration program is focused on expanding the extent of the high-grade zones in the Iceberg deposit and exploring other prospective Carlin-type gold systems on the property.
For more information, please visit the NuLegacy website.