Signal Gold Announces Financing Success and Debt Restructuring

Toronto-based Signal Gold Inc. has exercised its upsize option for a concurrent financing deal. On December 10, 2024, the company closed a second tranche of its oversubscribed subscription receipt offering, generating $265,000.05 in gross proceeds. Overall, the financing reached a total of $10.7 million. The initiative supports the acquisition plan of NexGold Mining Corp., which aims to bolster gold project developments in Ontario and Nova Scotia.

The automatically converted subscription receipts have become Signal Gold units. These include common shares and warrants, valid for 24 months. Proceeds will address debt payments, support exploration, and enhance working capital. Furthermore, Signal Gold finalized debt restructuring with Nebari, reducing their debt significantly. A new US$12 million facility will replace existing liabilities.

With this, Nebari gains a 0.6% NSR on the Goldboro Project, potentially increasing to 2% if not repurchased within 30 months. A US$4 million equity placement with Nebari will assist in debt retirement.