Nevgold Resource Corp.

Nevgold Resource Corp.

December 28, 2007 18:22 ET

Nevgold Completes $1.2 Million Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 28, 2007) - Nevgold Resource Corporation ("Nevgold" or the "Corporation") (TSX VENTURE:NDG) is pleased to announce the closing of its $1.2 million non-brokered private placement (the "Private Placement").

Pursuant to the Private Placement, the Corporation has issued an aggregate of 2,400,000 units ("Units") at a price of $0.50 per Unit for gross proceeds of $1,200,000. Each Unit consists of one common share in the capital of the Corporation ("Common Share") and one non-transferable warrant to purchase a Common Share ("Warrant"). Each Warrant will entitle the holder to purchase an additional Common Share for a period of two years from the closing of the Private Placement at an exercise price of $0.65 per Common Share. If the closing trading price of the Common Shares on the TSX Venture Exchange (the "Exchange") is equal to $1.00 or greater for a period of 20 consecutive trading days, the Corporation may give notice to the holders of the Warrants of earlier expiry of the Warrants. The Common Shares and the Warrants issued pursuant to the Private Placement are subject to a 4-month hold period expiring on April 29, 2008.

The net proceeds of the Private Placement will be used by the Corporation to fund exploration activities, potential future acquisitions and ongoing business expenditures, as well as for general working capital purposes.

Nevgold also announces that it has elected not to apply for an extension covering the 170.619 hectare mining lease in Ontario's Greenlaw Township. The 21-year mining lease expired on November 30, 2007.

About Nevgold

Nevgold is a North American focused exploration company, with a wholly owned gold property in Manitoba, plus two wholly-owned gold-base metal properties in Ontario and is actively seeking new business opportunities. The Common Shares trade on the Exchange under the symbol "NDG".

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Nevgold Resource Corp.
    Richard A. Graham
    President and CEO
    (604) 689-1428
    (604) 681-4692 (FAX)