16 July 2020
NxGold Ltd. is pleased to announce that it has entered into an option agreement with IsoEnergy Ltd. to acquire a 100% interest in the Mountain Lake uranium project in Nunavut, Canada, subject to relevant regulatory approvals.
NxGold President and CEO, Philip Williams commented; "With this acquisition NxGold has taken another solid step into the uranium sector by adding a high-grade uranium project in Canada, with strong upside potential. The team at IsoEnergy completed an extensive review of the data from previous operators and has left us with a turnkey exploration plan including geophysics, resampling core and ultimately drilling."
Terms of the Option Agreement
Under the terms of the Option Agreement, NxGold has the option to acquire a 100% interest in the Mountain Lake uranium project in consideration for the issuance of 900,000 common shares at the 5-day volume weighted average price of the common shares (the "Market Price") following the business day that the TSXV provides conditional approval of the Option Agreement and payment of $20,000 cash to IsoEnergy. The option is exercisable at NxGold's election on or before the second anniversary of closing, for additional consideration of $1,000,000 payable in cash or shares at the Market Price prior to the exercise date and reimbursement of certain expenditures. If NxGold elects to acquire the Mountain Lake property, IsoEnergy will be entitled to receive the following contingency payments, payable in cash or shares: