NexGold Mining has secured a $24-million royalty agreement with Appian Capital Advisory and signed a non-binding deal for as much as $175 million in project financing to advance its Goldboro gold project in Nova Scotia, Canada.
Appian will pay NexGold upfront cash for a 2.9% net smelter return (NSR) on all minerals from Goldboro until 1.25 million ounces of gold or gold equivalent are produced. After that threshold, the royalty will apply only to gold. NexGold can repurchase 1.9% of the royalty under certain conditions.
The company said proceeds will go toward repaying a $12-million debt facility with Nebari and buying back a 0.6% NSR, leaving NexGold debt-free. The deal is expected to close by the end of September, pending customary approvals.
NexGold also signed a letter of intent with Appian for up to $175 million in senior secured credit to fund Goldboro’s construction. Appian retains the right to negotiate for up to half of any project financing within three years of the royalty closing.
“This royalty financing provides NexGold with important non-dilutive capital to help advance Goldboro towards construction, as well as deleverage the balance sheet,” chief executive officer Kevin Bullock said.
Staged planning
The Goldboro project, approved by the province in August after seven years of consultation and study, is expected to span 15 years, including development, 11 years of operation, and remediation.
Nova Scotia has leased 7.79 sq. km of Crown land to NexGold for the mine, with operations also extending onto company-owned land.
The project was the first approved under Nova Scotia’s new phased approval process for mines. Introduced in June, the reforms allow companies to submit some operational plans, such as erosion and sediment control, after receiving approval but before construction begins. Officials say the changes are designed to speed up project development while maintaining environmental safeguards.
Oversight will continue throughout the mine’s lifecycle, with the Department of Environment and Climate Change monitoring compliance with approval terms.
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NexGold Mining has secured a $24-million royalty agreement with Appian Capital Advisory and signed a non-binding deal for as much as $175 million in project financing to advance its Goldboro gold project in Nova Scotia, Canada.
Appian will pay NexGold upfront cash for a 2.9% net smelter return (NSR) on all minerals from Goldboro until 1.25 million ounces of gold or gold equivalent are produced. After that threshold, the royalty will apply only to gold. NexGold can repurchase 1.9% of the royalty under certain conditions.
The company said proceeds will go toward repaying a $12-million debt facility with Nebari and buying back a 0.6% NSR, leaving NexGold debt-free. The deal is expected to close by the end of September, pending customary approvals.
NexGold also signed a letter of intent with Appian for up to $175 million in senior secured credit to fund Goldboro’s construction. Appian retains the right to negotiate for up to half of any project financing within three years of the royalty closing.
“This royalty financing provides NexGold with important non-dilutive capital to help advance Goldboro towards construction, as well as deleverage the balance sheet,” chief executive officer Kevin Bullock said.
Staged planning
The Goldboro project, approved by the province in August after seven years of consultation and study, is expected to span 15 years, including development, 11 years of operation, and remediation.
Nova Scotia has leased 7.79 sq. km of Crown land to NexGold for the mine, with operations also extending onto company-owned land.
The project was the first approved under Nova Scotia’s new phased approval process for mines. Introduced in June, the reforms allow companies to submit some operational plans, such as erosion and sediment control, after receiving approval but before construction begins. Officials say the changes are designed to speed up project development while maintaining environmental safeguards.
Oversight will continue throughout the mine’s lifecycle, with the Department of Environment and Climate Change monitoring compliance with approval terms.