NuLegacy Gold stock jumps on $7.5 million financing

Drilling at the Avocado Zone at Red Hill property. Image by NuLegacy Gold Corp.

Vancouver-based NuLegacy Gold Corp (TSXV: NUG) announced Tuesday that it has closed a private placement offering of 100 million units of the company at a price of C$0.075 per unit for gross proceeds of C$7.5 million.

Directors and officers of the company participated in the placement, purchasing more than 7 million units altogether for gross proceeds of C$533,977.

Each unit comprises one common share and one-half of one common share purchase warrant. Each full warrant entitles the holder to acquire one share of NuLegacy Gold at an exercise price of C$0.12 for a period of 36 months following the closing of the financing.

Proceeds will be used to carry out the budgeted drilling program for the company’s Red Hill property in Nevada, which it says will begin shortly.

NuLegacy’s shares jumped 7% during Tuesday’s trading session. The gold miner has a market capitalization of approximately C$23 million.