Nordgold Increases its Stake in Northquest to 52.3%
Amsterdam, Netherlands, November 25, 2015 - Nord Gold N.V. (“Nordgold” or the “Company”, LSE: NORD), an internationally diversified low-cost gold producer, is pleased to announce that it has acquired 17,500,000 new common shares (“Shares”) of Northquest Ltd. (TSX-V: NQ) (“Northquest”) upon the exercise of warrants (“Warrants”) that had been issued to Nordgold in connection with its previous investments in Northquest (the "Transaction”).
Northquest owns the Pistol Bay Gold Project, a high grade exploration project located in Nunavut Territory, northern Canada, on the west coast of Hudson Bay.
Nordgold has paid an aggregate of CAD$5.0 million (approximately US$3.8 million) in connection with exercising the Warrants.
As a result of the Transaction, Nordgold holds an aggregate of 55,574,999 Shares and has therefore increased its stake in Northquest from 42.9% to 52.3% on a non-diluted basis.
In June 2014, Northquest issued Nordgold 1,388,889 Warrants with an exercise price of CAD $0.24 per Warrant; in July 2014, Northquest issued Nordgold 5,000,000 Warrants with an exercise price of CAD $0.27 per Warrant; and in June 2015, Northquest issued Nordgold 11,111,111 Warrants with an exercise price of CAD $0.30 per Warrant.
Nordgold has now exercised all of its warrants in Northquest.
Nikolai Zelenski, Chief Executive Officer of Nordgold, said:
After positive results of the exploration programme at Pistol Bay in 2015, which confirmed its potential of being a high quality deposit of substantial scale with high grade ore, a moderate stripping ratio and excellent metallurgy we are pleased to provide continuing support to the project development with this additional investment.
As part of Nordgold’s strategy to achieve long term sustainable growth, we continue to pursue a number of exciting exploration opportunities and it is particularly pleasing to see success in the Pistol Bay investment. We are also looking forward to the continuing progress at the 3.8 million ounce Montagne d’Or gold project in French Guiana with a Feasibility Study expected to conclude in Q4 2016. Nordgold will continue to invest strategically in its organic growth pipeline and where we see opportunities to acquire premium-quality reserves and resources.
Nordgold acquired the Shares for investment purposes. Nordgold may increase or decrease its beneficial ownership, control or direction over Shares depending on the evolution of Northquest’s business, financial condition, the market for Northquest’s securities, general economic conditions and other factors.
This press release is issued pursuant to National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, which requires a report to be filed under Northquest’s profile on SEDAR (www.sedar.com) containing additional information with respect to the foregoing matters. A copy of such report may be obtained by contacting Valentina Bogomolova, Head of IR at +7 495 644 44 73 ext. 701 6711.The address of Nordgold is:
Nord Gold N.V. Herikerbergweg 238 Luna ArenA 1101 CM Amsterdam Zuidoost The Netherlands
Nordgold (LSE: NORD) is an internationally diversified low-cost gold producer established in 2007 and publicly traded on the London Stock Exchange. The Company has expanded rapidly through carefully targeted acquisitions and organic growth, achieving a rate of growth unmatched in the industry during that period. In 2014, Nordgold’s gold production increased to 985 thousand ounces from 924 thousand ounces in 2013. The Company operates 9 mines and has 2 development projects, 4 advanced exploration projects and a diverse portfolio of early-stage exploration projects and licenses in Burkina Faso, Guinea, Russia, Kazakhstan, French Guiana and Canada. Nordgold employs over 8,000 people.
For further information, please contact:
Head of IR
|Tel: +7 495 644 4473|
Head of Media Relations
|Tel: +7 495 644 4473|
|Tel: +44 (0)20 7379 5151|