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July 23, 2015

#NuLegacy #Gold Is First In Line To Benefit From #Barrick's Renewed Focus On Core Assets - NuLegacy Gold Corporation (OTCMKTS:NULGF) | Seeking Alpha

NuLegacy is on the verge of a major turning point.  Today's excellent results only confirms the desirability of the Iceberg deposit. 
This from SeekingAlpha:
When we asked about the remaining earn-in obligations, CEO Mr. Anderson assured us that only $700,000 remains to be spent, and the earn-in will be completed by October 15 this year. Not long after that a meeting with Barrick Gold will be called to discuss the future working arrangements for the Iceberg project. NuLegacy Gold currently holds approximately $3.2M in cash and marketable securities, more than enough to fund the company well beyond the October 15 dead line.

(Goldrush across the valley from Iceberg. Source: Company presentation)

Beyond The Earn-In

Barrick Gold will have 90 days to decide on how it wishes to proceed once the earn-in has been confirmed. According to the agreement between the two companies, the major can either earn back a 70% stake by spending $15M on further exploration; or remain a 30% minority partner.
If Barrick decides to spend $15M on further exploration and development of the Iceberg project in order to earn back a 70% stake, then NuLegacy Gold's ultimate 30% stake will also be carried to production without further dilution. This means that Barrick Gold would be responsible for funding Iceberg until production, and NuLegacy Gold will pay back its 30% share of development costs from cash flow once the mine is operational. In essence, NuLegacy Gold will own an asset very similar to a royalty on Barrick Gold's next mine in Nevada, and that will be worth a lot of money to any of the larger streaming or royalty companies.
And if Barrick Gold decides to remain a 30% minority partner, then NuLegacy Gold has a 70% stake in the next deposit down the road from Goldrush on the Cortez trend. Plenty of mid-tier miners are currently trying to find a footing in desirable jurisdictions and Iceberg is prime real estate in this context.
Importantly, this is not an endless exploration play with multiple cap raises and years of uncertainty. To the contrary, the time frame for the NuLegacy Gold story is very limited. The earn-in will be completed shortly after October 15, and Barrick Gold will need to make its choice by early Q1 2016. In fact, this limited time line is an important point we would like to emphasize about this particular play.

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