NuLegacy Gold Corp. is looking to raise gross proceeds of C$9.0 million via a nonbrokered private placement to fund its 2017 drill program at the Red Hill gold property in Nevada.
The company will issue 20 million units at 45 cents apiece. Each unit consists of 1 common share and 1 share purchase warrant, exercisable at 65 cents per share for 18 months.
NuLegacy Chairman Albert Matter said the funding will allow the company to use extra drill rigs, according to the company's Oct. 4 news release.
"The deeper exploration drilling of the Avocado deposit, and the need for more core holes to better delineate the Iceberg deposit in preparation for a resource valuation, increases the budgetary needs," Matter said.
The financing is expected to close Oct. 11, subject to conditional acceptance of the TSX Venture Exchange.