has agreed toinvest about C$6.7 million in NuLegacyGold Corp. through a private placement of 47,663,228 commonNuLegacy shares at 14 cents apiece, the companies said in separate April 7statements.
Thefinancing is expected to close April 13, after which OceanaGold will own about19.9% of NuLegacy's outstanding share capital on an undiluted basis.
Inaccordance with the companies' subscription agreement, OceanaGold will have theright to nominate a director to NuLegacy's board, as long as it holds at leasta 5% shareholding in the company, appoint a representative to NuLegacy'stechnical committee, participate in all future equity financings and the rightof "first offer to negotiate" should a joint venture be contemplatedfor the purposes of financing NuLegacy's Iceberg gold project in Nevada.
Furthermore,OceanaGold also has the option to purchase up to an additional 9,303,845 commonNuLegacy shares, subject to certain conditions.
Accordingto NuLegacy Chairman Albert Matter, the proceeds will allow the company torapidly expand the Iceberg gold deposit and fund the exploration of NuLegacy'sadjacent Idaho Resources Corp. claims.
NuLegacy's2016 exploration season is expected to start later this month or early in May.