NuLegacy Announces C$2.5 Million Private Placement

~ Updates fall drill program ~

By regulatory requirement,
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

RENO, Nev., Sept. 12, 2023 (GLOBE NEWSWIRE) -- Further to our news release of August 22, 2023, NuLegacy Gold announces a private placement¹ of 100,000,000 units (the “Units”) at a price of C$0.025 per Unit to raise gross proceeds to the Company of C$2.5 million (the “Offering”).

Up to 80% of the net proceeds of the Offering will be used to carry out NuLegacy’s planned 2023 exploration program of five or more reverse circulation drill holes on the Company’s flagship 108 sq. km. Red Hill property in the Cortez-gold trend of Nevada, as more particularly described in our news release of August 22, 2023, at a budgeted cost of US$1.25 million (Cdn$1.75 million). The balance of the net proceeds from the Offering will be used for general corporate and working capital purposes including management fees and salaries.

Drilling is expected to begin within 10 days of closing of the Offering (the “Closing”), with an initial Closing expected to occur on or about October 12, 2023, or such earlier date as the Company has received subscriptions for more than 50% of the Offering.

Each Unit consists of one common share of the Company (a “Common Share”) and one transferable Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to acquire one Common Share of the Company for a five-year term following Closing of the Offering at an exercise price of C$0.05, subject to acceleration only in the event of a take-over bid, merger, plan of arrangement or similar business combination transaction of the Company, provided the then trading price of the Company’s shares is at least $0.15 per share.

NuLegacy’s CEO Albert Matter comments that “In the event of over-subscription, the Company will seek to accommodate long-term shareholders.”

The Offering includes a lead order from Crescat Capital, a US based investment fund, to a minimum of 10% of the offering up to 10,000,000 Units or C$250,000.
In addition, certain directors and/or officers of NuLegacy will participate in the Offering to a minimum of 10% of the offering up to 10,000,000 Units or C$250,000, which participation will constitute a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”).