NuLegacy Gold Arranges C$3.0 Million C$0.20/Unit Financing

RENO, Nev., July 05, 2018 (GLOBE NEWSWIRE) — NuLegacy Gold Corporation (TSX-V:NUG) (OTCQX:NULGF) is undertaking a non-brokered private placement financing up to 15 million units (“Units”) at a price of $0.20 per Unit to raise C$3.0 million (the “Financing”).

“We are delighted to have our major shareholder, OceanaGold, support NuLegacy’s exploration objectives in this funding,” comments Albert Matter, NuLegacy’s Chairman. “We have sufficient funds to complete our 2018 exploration program; we are increasing our treasury to handle an anticipated expansion of the Fall 2018/Spring 2019 drilling programs. Upon closing, NuLegacy will have ~C$9.0 million in its treasury.”

OceanaGold Corporation intends to exercise its equity participation right in NuLegacy financings (see news release dated April 13, 2016) by purchasing such number of Units as required to maintain its current undiluted equity ownership interest in NuLegacy Gold at 16.2% (2.4 million Units on full subscription). In addition, certain directors and officers of NuLegacy (collectively “Insiders”) intend to participate in the Financing for a substantial number of Units.

Each Unit of the Financing consists of one common share and one share purchase warrant, with each warrant entitling the holder to purchase one additional common share for a period, subject to acceleration, of 24 months at an exercise price of C$0.30 per share. The financing is expected to close on or about July 16, 2018. The net proceeds from the Financing will be used to fund the ongoing exploration of NuLegacy’s Red Hill property, and general corporate and working capital expenses.

Finder’s fees in cash and/or finder’s warrants will be payable on a portion of the Financing (excluding OceanaGold and Insiders) in accordance with the policies of the TSX Venture Exchange (the “Exchange”). All securities to be issued in connection with the Financing will be subject to a four month hold period. 

The portions of the Financing with OceanaGold and Insiders constitute “related party transactions” for the purposes of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions (“MI 61-101”), and the Company has relied upon exemptions from the requirement to obtain a formal valuation and seek minority shareholder approval for the Financing on the basis that the fair market value of OceanaGold’s and the Insiders’ respective portions of the Financing are less than 25% of the Company’s current market capitalization. The Financing remains subject to acceptance by the Exchange.

About NuLegacy Gold Corporation: NuLegacy is a Nevada exploration company focused on discovering additional Carlin-style gold deposits on its premier district scale 98 sq. km (38 sq. mile) Red Hill Project in the prolific Cortez gold trend of Nevada.

To date NuLegacy has discovered the Iceberg Carlin-style gold deposits and has identified several more highly prospective exploration targets that are being drilled this year.

NuLegacy’s Red Hill Project is located on trend and adjacenti to the three multi-million ounce Carlin-type gold deposits (the Pipeline, Cortez Hills and Goldrush deposits) that are amongst Barrick Gold’s largest, lowest cost and politically safest gold minesii. 

i The similarity and proximity of these deposits in the Cortez Trend is not necessarily indicative of the gold mineralization in NuLegacy’s Red Hill Project. 
ii As extracted from Barrick’s Q4-2013 and Q1-2014 reports. As reported by Barrick, the Goldrush resource contains 8,557,000 indicated ounces of gold within 25.78 million tonnes grading ~10.57 g/t and 1,650,000 inferred ounces within 5.6 million tonnes grading ~9.0 g/t.

On Behalf Of NuLegacy Gold Corporation

James E Anderson, Chief Executive Officer

For further information, please phone 604-639-3640 or contact James Anderson (CEO) at [email protected], Albert Matter (Chairman) at [email protected] or Frank Lagiglia (ICM) at [email protected] or visit www.nulegacygold.com.

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