Canadian mining exploration company NevGold has finalised the acquisition of a 100% interest in the Nutmeg Mountain Gold Project in Washington County, Idaho, US.

The project was acquired from GoldMining, which entered into an option agreement with NevGold on 14 June 2022.

Under the agreed terms, NevGold issued ten million common shares valued at $3m, with each share priced at $0.30.

GoldMining said that this transaction not only offers it immediate value but also allows it to maintain a potential upside to the future potential of the Nutmeg Mountain Gold Project.

The company remains focused on advancing and unlocking value from its other portfolio assets.

Following the acquisition, GoldMining has become the largest shareholder of NevGold, holding around 29.4% of the outstanding shares.

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This significant equity holding, valued at $132m, includes stakes in NevGold, US GoldMining and Gold Royalty. GoldMining’s position ensures continued exposure to the potential success of Nutmeg Mountain, as well as NevGold’s other assets in Nevada and British Columbia.

NevGold is now obligated to make additional contingent payments to GoldMining of up to $7.5m under the Option Agreement.

These payments can be made either in cash or shares, at NevGold’s discretion.

GoldMining CEO Alastair Still said: “We are pleased to complete the sale of the project to NevGold and to retain exposure to potential upside at the project as the largest shareholder of NevGold.

“By completing this transaction, the NevGold team benefits from synergies with their projects in neighbouring Nevada and has completed the required expenditures and advanced the project. Additionally, GoldMining retains future upside from the project through the success-based contingent payments of up to $7.5m on NevGold reaching certain milestones.

“For GoldMining, the transaction allows us to remain focused on our strategic initiatives, while bolstering our balance sheet through our strategic investment in NevGold.”