GoldMining wraps up sale of Nutmeg Mountain Project to NevGold


GoldMining Inc. (TSX: GOLD) (NYSE American: GLDG) has announced the successful sale of its Nutmeg Mountain Project to NevGold Corp. The deal, valued at $9 million, involves GoldMining Inc. receiving 10 million NevGold Shares, equating to the final $3.0 million payment under the Option Agreement. The transaction was executed at a deemed price of $0.30 per share, marking a substantial gain from the project’s initial acquisition cost of $1.15 million in 2020.

Strategic Benefits for Both Companies

The sale not only represents an immediate value crystallization for GoldMining but also allows it to retain potential upside to Nutmeg Mountain’s future development. As a result, GoldMining now holds a significant position in NevGold, becoming its largest shareholder with approximately 29.4% of the outstanding shares. This strategic position provides continued exposure to the potential growth of Nutmeg Mountain and NevGold’s other assets in Nevada and British Columbia.

GoldMining Inc. Enhances Portfolio with Successful Sale of Nutmeg Mountain Project to NevGold

GoldMining Inc. Enhances Portfolio with Successful Sale of Nutmeg Mountain Project to NevGold

Future Contingent Payments and Growth Potential

NevGold is obligated to make additional contingent payments of up to $7.5 million to GoldMining, based on the progression of Nutmeg Mountain. These payments will be triggered by the announcement or filing of various assessments and studies related to the project.

CEO’s Perspective on the Deal

Alastair Still, CEO of GoldMining, expressed enthusiasm about the transaction, emphasizing the synergies and future upside potential for both companies. He noted that this deal allows GoldMining to focus on its strategic initiatives while enhancing its balance sheet through its investment in NevGold.

The completion of the Nutmeg Mountain Project sale by GoldMining Inc. to NevGold represents a significant transaction in the mining industry. This strategic move not only yielded an attractive rate of return for GoldMining Inc. but also positioned the company as a major shareholder in NevGold. The deal reflects the dynamic nature of the mining and resource exploration industry, where strategic asset reallocation can lead to substantial financial gains and diversified investment opportunities. Furthermore, GoldMining Inc.’s ability to retain potential upside and future contingent payments underscores a savvy approach to asset management and strategic planning within the sector.

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