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NuLegacy completes acquisition of Barrick Gold's interest in Iceberg deposit

EBR Staff Writer Published 04 March 2016

NuLegacy Gold reports that it has closed the previously announced transaction with Barrick Gold Corporation ("Barrick") whereby NuLegacy has acquired Barrick's 30% working interest in the Redhill property (the "Property") in Nevada hosting the Iceberg gold deposit.

In exchange, NuLegacy has issued 32 million shares (the "NUG Shares") to Barrick and granted a 2% net profits interest royalty from commercial production on the Property.

Barrick now has the right to nominate one director to NuLegacy's board and to participate pro rata in all future issuances of shares or convertible securities.

Barrick has provided NuLegacy with certain stand still and voting restrictions in favour of NuLegacy in respect of their shares for a period of two years, subject to certain conditions. NuLegacy now owns 100% of the Property, subject to the underlying royalties.

The TSX Venture Exchange ("TSX-V") has conditionally accepted the transaction and no finder's fees are payable. The NUG Shares are subject to a statutory hold period of four months and one day expiring July 3, 2016.

The Iceberg gold deposit, located in the Cortez gold trend of Nevada, is adjacent[i] to three of Barrick`s multi-million ounce Carlin-type gold deposits that are its lowest cost and politically safest gold assets[ii], and has an established exploration target of 90-110 million tonnes of 0.9 to 1.1 grams of gold per tonne[iii].

Source: Company Press Release