CEO’s Chats

NuLegacy's Penultimate Financing

~ This Could Be The Last Time ~


This Could Be The Last Time

To NuLegacy shareholders/stakeholders:

Good afternoon folks - pray you had a reasonable Christmas and will experience a happy and prosperous New Year.

This is it; this is either the last or second to last/penultimate financing that we (as in you and I) will do for NUG to prove/discover the elephant in the Rift Anticline before I ride off into the sunset of my retirement (75 this year).

NuLegacy is the fourteenth company I have been associated with:

  • One became a billion-dollar market capitalization…that is Alamos Gold.

    Ironically I started Alamos Gold as “National Gold” (as in the national gold of Great Britain when she ruled the seas, and her currency was backed by her gold)...and now the national gold of the US…which gold blessedly no longer backs the US currency…else the paper dollar holders would be rushing, even at these prices, to cash their ‘lil bits of paper’ for gold...and then Fort Knox truly would ‘be emptied’.

    My partners in National Gold and I (principally James McDonald the geologist who subsequently went on to further fame and fortune as a serial company builder – Genco Resources, Northern Vertex …) bought the Mulatos deposit in Mexico (3 million Proven and Probable ounces with a “six foot” (number of feet of printed paper) feasibility study from Placer Dome at the nadir of the 2000-2001 bear market for the princely sum of ¼ million dollars down, and ten million on the come.

    When gold went up a bit we managed to sell half (for $10 million) to Chester Millar’s Alamos Minerals, and with Chester’s extraordinary reputation for sniffing out good deals we then managed to attract a following and within seven or so years had a billion dollar market cap, back in the day when a billion was a thousand million ☺, and had some value. Then we merged the two into Alamos Gold…Chester won the coin toss for the first part of the name…Alamos, and National contributed ”Gold”. Chester’s partner John McClusky went on to put it into production and made it a great success.
     
  • One of my adventures failed to return the capital…fake news way of saying it produced a loss on our investments, ‘was a loser’.
     
  • And twelve more either made a modest profit or up to several hundred percent profits.

NuLegacy has taken the longest to turn over for two, perhaps three identifiable reasons:

  1. It’s an exploration play…most of the previous companies I was associated with were ‘pre-production trades’...see my dissertation on that type of trade at: https://nulegacygold.com/investors/presentations/nug-investor-presentation/mining-share-price-cycle/
     
  2. When you make a living rummaging in the trash cans of the majors, you have to ‘buy at the bottom’...as that’s where, after having undisciplinedly chased assets (paid too much) they are shrinking themselves to survival.

    Thus, my exploration partner of the time, Dr. Roger Steininger, the discoverer of the Pipeline deposit just three doors to the north-west of the Rift Anticline, persuaded me to acquire the Red Hill property during the spring of ’09...just at the bottom of the ”Panic of ‘08”. 

    We closed on the earn-in transaction in the spring of 2010 and experienced a brief rally in gold to an all-time peak (to that date) of $1,921 in 2011…before we were faced with a US $5 million earn-in task just as the gold market tanked…into a five year bear market…gggrrr…I shudder at the recollection of the task my business partner James Anderson and I faced to keep the Company alive and fulfilling its yearly earn-in expenditure requirements…and having to sell stock as cheap as 7.5 cents to pay the freight.

My long-time friend and business associate Alex Davidson, former double VP for Barrick (Exec VP for Exploration & Corporate Development (not often a senior company has one man doing both jobs) with whom I built a great little silver mine forty years ago, joined the NUG BOD in 2014…and was instrumental, amongst other things, in recruiting Ed Cope, our Director Exploration (former Barrick VP Exploration NA), who in turn was instrumental in our recruiting about five of the ten best of Barrick’s exploration team, most notably the ‘wizard behind the curtain’, and now our District geologist, Charles Weakly.

NuLegacy has the potential to become the second company I’ve founded to be a real winner.

So, to abbreviate to what otherwise (☺)  might become a too lengthy a diatribe…I’ll cut to the chase:

Back in December one of our larger shareholders expressed the notion that 2021 should be a good year for junior golds, and that NUG needed more money to get on with it …accelerate the program…’fill or kill’ the project.

And he was right…in our estimation with the next twelve holes…(maybe thirteen cause that’s my lucky number)…we should have, at the very least, tagged a corner of a giant Carlin deposit…or else its “too damn small for us to bother with...and we’ll let someone else chase it from there on…thank you very much”!

The good news is that, what we found as we drilled holes three and four encouraged us to drill hole four to 2,936 feet, deeper than the 2,300 feet originally targeted; but unfortunately at significantly higher cost…as you know drilling gets much more expensive the deeper you go.  Drill core has been sent for assaying with results anticipated shortly.

So in preparation for the possibility of a financing we got out a ‘skirt clearing’ news release in December...and waited to let the customary year end book balancing/tax selling finish…and see how the year would start out.

Well it started with a bang...and a few more people came up with the same notion...and voila…we are going to market with a 100,000,000 units at 12.5 cent per unit with a full three year warrant at 20 cents….which will enable us to accelerate and expand our Spring/Summer 2021 drilling and exploration program.

So that’s it for now.  Feel free to reach out if you wish to discuss the foregoing further.

Cheers,

Albert J. Matter
CEO, Director
NuLegacy Gold Corporation | NUG:TSXV | NULGF:OTCQX
C: 604.512.7003 | www.nulegacygold.com

The foregoing chat (including the attached links) is not to be relied upon as advice to investors or potential investors and does not constitute an offer to sell or the solicitation of an offer to buy any security nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. In addition, the foregoing contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions based on information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees and are subject to numerous risks and uncertainties (as more particularly described in the Company’s continuous disclosure documents filed on www.sedar.com) that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required by applicable law.

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