~ Funds Iceberg Earn-in Program ~
March 7, 2014 - Reno, NV - NuLegacy Gold Corporation reports closing of its previously announced $3.2 million share exchange financing.
Net proceeds from this financing together with cash on hand are expected to be sufficient to complete the direct exploration expenditures of US$2.9 million required to earn NuLegacy's 70% working interest in the Iceberg gold deposit. Thereafter, Barrick Gold Corporation will have to either fund 30% of additional exploration expenditures in order to maintain its 30% working interest, or elect to earn-back to a 70% working interest by funding all of the next US$15.0 million of exploration expenditures and carry NuLegacy's resulting 30% interest to commercial production.
Under the terms of the share exchange with Global Resources Investment Trust PLC ("GRIT"), NuLegacy has issued 20,000,000 common shares (circa 17.7% of the Company's current outstanding shares) at a price of C$0.16 per share ($3.2 million) in return for 1,731,200 GRIT shares at a deemed price of 1 British Pound per share.
The GRIT Shares were distributed pursuant to a prospectus published by GRIT in the UK on February 28, 2014. GRIT's application to list its ordinary shares on the premium listing segment of the Official List and to trade on the London Stock Exchange's main market became effective March 7, 2014. GRIT's distribution of the GRIT Shares to the Company and other Canadian based issuers was also made pursuant to a discretionary exemption order granted by the Ontario and British Columbia Securities Commissions by order dated November 13, 2013.
The Company has agreed to pay a third party finder's fee of 3% of the actual net proceeds received from the sale of GRIT shares in connection with the financing. All securities issued by NuLegacy in connection with share exchange financing are subject to a four month and one day hold period expiring July 8, 2014.
NuLegacy Gold Corporation is a Nevada based company focused on delineating gold resources in its near-surface Iceberg oxide gold deposit. The Iceberg gold deposit, located on a 60 square km portion of Barrick Gold Corporation's prolific Cortez gold trend, has similar geology to that of Barrick's immediately adjacent multi-million ounce Goldrush gold discovery.1
1. Reported by Barrick as at Dec. 31, 2013, the Goldrush deposit contains a resource of 423,000 ozs gold (3,091,000 tons grading 0.137 oz/ton - measured), 9,537,000 ozs gold (72,449,000 tons grading 0.132 oz/ton - indicated) and 5,555,000 ozs gold (39,472,000 tons grading 0.141 - inferred).
ON BEHALF OF THE BOARD OF DIRECTORS OF NULEGACY GOLD CORPORATION
James E Anderson, Chief Executive Officer
For further information, please phone 604-638-4959 or contact James Anderson at email@example.com, Albert Matter at firstname.lastname@example.org or Roger Steininger, COO at email@example.com; or visit www.nulegacygold.com.
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