Nordgold Increases Stake in Northquest Ltd
Amsterdam, Netherlands, June 5, 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 22,222,222 units (“Units”) of Northquest Ltd. (TSX-V: NQ) (“Northquest”) at a price of CAD$0.20 per Unit for total proceeds of CAD$4.4 million (approximately US$3.6 million) (the “Transaction”).
Each Unit is comprised of one common share of Northquest (a “Share”) and one-half of one share purchase warrant, with each whole share purchase warrant entitling the holder to acquire one additional Share at an exercise price of CAD$0.30 for a period of 24 months.
As a result of the Transaction, Nordgold has increased its stake in Northquest to 42.9% from 23.8% on a non-diluted basis.
As of June 4, 2015, Nordgold holds an aggregate of 38,074,999 common shares and an additional 17,500,000 warrants of Northquest.
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.
Nikolai Zelenski, Chief Executive Officer of Nordgold, said:
Pistol Bay is an exploration project with real potential and is already showing signs of containing a high quality deposit of substantial scale, benefitting from high grade ore, a moderate stripping ratio and excellent metallurgy. Given the positive early results from the field we are pleased to fund the 2015 exploration programme through participation in this private placement financing in Northquest. Pistol Bay is one of a number of exciting exploration opportunities Nordgold is currently pursuing which also includes the Montagne d’Or gold deposit in French Guiana and the Ronguen Gold Project adjacent to our Bissa mine in Burkina Faso.
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: +7 916 474 5996|
Head of Media Relations
|Tel: +7 916 510 1411|
|Tel: +44 (0)20 7379 5151|