(TheNewswire)
Vancouver, Canada – TheNewswire - August 10, 2022 – Nexus GoldCorp. (“ Nexus Gold ” or the “ Company ”)(TSXV:NXS ) , ( OTC:NXXGF ) , ( FSE:N6E) is pleased to advise that its proposed plan ofarrangement (the “ Arrangement ”), announced June 28, 2022, hasreceived approval of the shareholders of the Company. The Arrangement,which involves the spinout (the “ Spinout ”) of theCompany’s Canadian projects (which include the McKenzie GoldProject, located in Red Lake, Ontario, and the 13,000-hectare CycloneGold-Nickel-Copper project, located in the James Bay region, Quebec)was approved at a special shareholders meeting held on August 4, 2022,by 99% of the votes cast at the meeting.
The Arrangement remains subject to approval by theSupreme Court of British Columbia. The court hearing to obtain a finalorder approving the Arrangement is scheduled to take place on August10, 2022. Completion of the Arrangement is also subject to approvalof the TSX Venture Exchange.
In anticipation of completion of the Spinout, theCompany has transferred all of its rights to the Canadian projects toNexus Metals Corp. (“ NexusMetals ”), a newly-established subsidiary ofthe Company. A total of 45,390,465 shares of Nexus Metals(“ Nexus MetalsShares ”) will be distributed on a pro ratabasis to shareholders of the Company (“ Nexus Gold Shareholders ”) pursuant to the Arrangement. Based on the currentoutstanding share capital of the Company, it is anticipated that thiswill result in Nexus Gold Shareholders receiving approximately 1 NexusMetals Share for every 7 shares of the Company they hold.
Completion of the Arrangement is expected to occur onor about August 31, 2022.
“With shareholder approval we’re pleased to moveforward with the spinout plan,” said CEO, Alex Klenman. “We lookforward to listing Nexus Metals and revamping Nexus Gold to create twoseparate, viable exploration companies with very specific mandates. The board feels this is the most effective way to realize valuecontained within our project portfolios and we’re excited to move tothe next steps in the process,” continued Mr. Klenman.
The Company also advises it is continuing with its duediligence process in regard to the acquisition of one or more projectsfor both Nexus Metals and Nexus Gold. Updates on this initiative, aswell has exploration plans for the months ahead, will be provided forboth companies in the next few weeks.
Further information regarding the Arrangement and theSpinout is available in the Company’s management informationcircular dated June 7, 2022, a copy of which is available under NexusGold’s profile on SEDAR at www.sedar.com .
The Company shall in due course determine the recorddate for the purpose of determining the Nexus Gold Shareholdersentitled to receive Nexus Metals Shares under the Arrangement (the“ Distribution RecordDate ”). The payout date for the Nexus MetalsShares to be distributed to Nexus Gold Shareholders pursuant to theArrangement will be three Business Days following the DistributionRecord Date. A letter of transmittal will in due course be mailed toeach Nexus Gold Shareholder and be made available under Nexus Gold’sprofile on SEDAR at www.sedar.com .
Cancellation of Stock Options
The Company is pleased to announce that it has enteredinto Stock Option Cancellation Agreements withoption holders holding in aggregate 7,000,000 incentive stock optionsto acquire common shares of the Company at various prices. Pursuant tothe agreements, the Company intends to cancel these options withoutany further consideration.
Debt Settlement
The Company announces that it has completed thesettlement of an outstanding payable in the amount of $50,000 owing toan arms-length service provider through the issuance of one millioncommon shares at a deemed price of $0.05 per share. The commonshares issued in connection with the settlement will be subject torestrictions on resale until November 12, 2022, in accordance withapplicable securities laws.
About the Company
Nexus Gold is a Canadian-based gold exploration anddevelopment company with an extensive portfolio of projects in Canadaand West Africa. The Company’s primary focus is on its 100%-owned,Dakouli 2 Gold Concession in Burkina Faso, West Africa, and theMcKenzie Gold Project, located in Red Lake, Ontario. The Company is focusing on the development of its core assetswhile seeking joint-venture, earn-in, and strategic partnerships forother projects in its portfolio.
For more information, please visit nxs.gold
On behalf of the Board of Directors of
NEXUS GOLD CORP.
Alex Klenman
President & CEO
604-558-1920
info@nexusgoldcorp.com
www.nexusgoldcorp.com
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release. This news release may containforward-looking statements. These statements are based on currentexpectations and assumptions that are subject to risks anduncertainties. Actual results could differ materially because offactors discussed in the management discussion and analysis section ofour interim and most recent annual financial statement or other reports and filingswith the TSX Venture Exchange and applicable Canadian securitiesregulations. We do not assume any obligation to update anyforward-looking statements, except as required by applicablelaws.
Copyright (c) 2022 TheNewswire - All rights reserved.