Maria Nathanail and Breton Gaunt assisted Silver Mountain Mines Inc. (the “Company”) in its acquisition (the “Transaction”) of the privately held NevGold Corp. (“NevGold”). In accordance with the terms of the Transaction, NevGold has amalgamated with a wholly-owned subsidiary of the Company, 1288412 BC Ltd., pursuant to the terms of a definitive amalgamation agreement dated February 17, 2021, as amended, among NevGold, the Company and 1288412 BC Ltd., and the Company has changed its name to “NevGold Corp.” (the “Name Change”). The Transaction constitutes a reverse take-over of the Company pursuant to the polices of the TSX Venture Exchange (the “Exchange”). The common shares of the Company are expected to recommence trading on the Exchange at the opening of the markets on June 28, 2021 under the new ticker symbol “NAU”. The Transaction is subject to the final acceptance of the Exchange.
In connection with completion of the Transaction, NevGold completed a brokered financing (the “Financing”) through the issuance of 15,662,333 subscription receipts (each, a “Subscription Receipt”) at a price of $0.40 per Subscription Receipt, for gross proceeds of $6,264,933.20 with Red Cloud Securities Inc. acting as lead agent, and a syndicate including Haywood Securities Inc. (collectively, the “Agents”).
Concurrently with the completion of the Transaction, the Company acquired the Limousine Butte and Cedar Wash projects in Nevada from McEwen Mining Inc. (“McEwen”) through the Company’s wholly-owned subsidiary Nevgold USA Inc. On closing of the Transaction, the Company issued to McEwen 4,963,455 common shares of the Company and common share purchase warrants of the Company exercisable to acquire 2,481,727 common shares of the Company, which warrants have an exercise price equal to $0.60 per warrant share until June 22, 2023.