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NuLegacy Gold halts exploration spending in Nevada; shares drop 35%

Citing tough financing markets, NuLegacy Gold Corp. said June 3 that it has suspended exploration plans in Nevada as it looks to preserve cash and find a partner or merger opportunity.

The gold explorer, which has about C$1.5 million in cash, said it would kill field programs "until improved markets for gold and junior gold stocks present better financing opportunities, or a joint venture or merger partner can be enrolled."

After revealing its cash preservation plan, NuLegacy's share price closed at 4 Canadian cents per share for a 35% drop.

The company raised C$3 million in July and August last year, which at the time brought its cash on hand to C$9 million. It drilled a number of gold targets with those funds, hitting as much as 8.7 meters grading 16.9 g/t gold in the Serena Zone on its Red Hill project.

Financing for early-stage exploration companies has been scarce in 2019, especially for early-stage explorers.