Nexus to acquire two gold projects in Newfoundland
Nexus Gold (TSX-V: NXS) announced plans to acquire the Black Ridge gold project and the Bauline epithermal gold project located in Newfoundland, eastern Canada.
In a press release, Nexus explained that Black Ridge is a high-grade gold-silver-copper prospect that features several known mineral occurrences, including areas that have produced samples of 15.8 grams-per-tonne gold, 15.5 grams-per-tonne gold, 12.1% copper and 143 grams-per-tonne silver.
To move ahead with the acquisition, the Vancouver-based miner has reached an agreement with Robert Stares, an arms’-length party.
Historical sample grades yielded up to 15.8 g/t Au, 12.1% Cu, and 143 g/t Ag
The deal requires Nexus to issue 5,500,000 common shares and grant a 2% net smelter return royalty on commercial production from the projects, one-half of which may be purchased at any time for a cash payment of $1 million.
This purchase follows that of the GB copper-gold project in central Newfoundland, a transaction that took place in May 2019. The company now holds 3,325 hectares of gold-silver-copper exploration ground in the Atlantic province.
“We really like the jurisdiction, it is a growing gold and precious metals exploration destination, with lots of regional success reported in recent months,” Nexus’ president and CEO, Alex Klenman, said in the media brief. “We feel consolidating a good land position there, at this time, is an excellent value-add strategy. There has been some high-grade sampling done on the projects to date, with lots of ground left to cover. As the gold price edges higher, we’re confident adding these and our other Canadian projects will greatly benefit our long-term goals.”