RENO, NV, Feb. 23, 2016
/CNW/ -
~Barrick to Become
NuLegacy's Largest
Shareholder~
NuLegacy Gold Corporation (NUG.V: TSXV) (OTCQX:NULGF)
("NuLegacy") is pleased to announce that it has entered into an
agreement with Barrick Gold Corporation ("Barrick") pursuant to
which NuLegacy has agreed to acquire Barrick's 30% working interest
in the 23 sq. mile Redhill property (the "Property") in
Nevada which hosts the Iceberg
gold deposit.
As of the date hereof, NuLegacy holds a 70% working interest in
the Property through a joint venture with Barrick.
In exchange, NuLegacy will issue 32 million shares to Barrick at
a deemed price of C$0.125 per share,
and grant a 2% net profits interest royalty from commercial
production on the Property.
Barrick has the right to nominate one director to NuLegacy's
board and participate pro rata in all future issuances of shares or
convertible securities.
Barrick has agreed to provide NuLegacy with certain stand still
and voting restrictions in favour of NuLegacy in respect of the
shares for a period of two years, subject to certain
conditions.
"We are pleased that Barrick has entrusted the advancement of
this exciting undeveloped gold prospect in Nevada to NuLegacy," says NuLegacy Director
Alex Davidson.
On closing, Barrick will become NuLegacy's largest
shareholder.
The transaction is expected to close on or about March 1, 2016 and is conditional on, among other
things, the approval of the TSX Venture Exchange ("TSX-V").
The Iceberg gold deposit, located in the Cortez gold trend of
Nevada, is adjacent[i]
to three of Barrick`s multi-million ounce Carlin-type gold deposits that are its lowest
cost and politically safest gold assets[ii], and has
an established exploration target of 90-110
million tonnes of 0.9 to 1.1 grams of gold per
tonne[iii].
On Behalf Of NuLegacy Gold Corporation
James E Anderson, Chief Executive Officer
For further information, please phone +1-604-638-4959 or contact
James Anderson at james@nuggold.com,
Albert Matter at albert@nuggold.com
or Roger Steininger, COO at
roger@nuggold.com; or visit http://www.nulegacygold.com.
Dr. Roger Steininger, NuLegacy's
chief operating officer is a Certified Professional Geologist (CPG
7417) and the qualified person as defined by NI 43-101,
Standards of Disclosure for Mineral Projects responsible for
preparing and reviewing the scientific and technical information
contained in this news release
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
This news release contains forward-looking
statements, which relate to future events or future performance and
reflect management's current expectations and
assumptions. Such forward-looking statements reflect
management's current beliefs and are based on
assumptions made by and information currently available to the
Company. Readers are cautioned that these forward looking
statements are neither promises nor guarantees, and are subject to
risks and uncertainties that may cause future results to differ
materially from those expected. There are no known resources
or reserves in the Iceberg deposit and the proposed
exploration programs are exploratory searches for commercial bodies
of ore. In addition, the presence of gold deposits on properties
adjacent or in close proximity to the Iceberg Deposit
is not necessarily indicative of the gold mineralization on
the Iceberg Deposit. All of the
forward-looking statements made in this news release are qualified
by these cautionary statements and those in our continuous
disclosure filings available on SEDAR at
http://www.sedar.com including our annual
management's discussion and analysis dated July
28, 2015 for the year ended March
31, 2015. These forward-looking statements are
made as of the date hereof and the Company does not assume any
obligation to update or revise them to reflect new events or
circumstances save as required under applicable securities
legislation.
i. The similarity and close proximity of these deposits in
the Cortez Trend is not necessarily indicative of the gold
mineralization in the Iceberg deposit.
ii. As extracted from Barrick's Q4-2013 and Q1-2014
reports.
iii. These figures are conceptual in nature and derived from
a compilation of 149 historic and 34 NuLegacy drill holes in and
around the Iceberg deposit. To date, there has been insufficient
exploration to define a mineral resource and it is uncertain if
further exploration will result in the target being delineated as a
mineral resource.
SOURCE NuLegacy Gold Corporation