Shares Surge as Nova Scotia Gold Project Gains Momentum

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NexGold Mining Corp. (NEXG:TSX.V; NXGCF:OTCQX; TRC1:FSE) announced a binding royalty agreement with an affiliate of Appian Capital Advisory Ltd., alongside a non-binding letter of intent (LOI) for potential project financing. The agreements support NexGold's 100%-owned Goldboro Gold Project in Nova Scotia, Canada.

Under the terms of the royalty agreement, Appian paid NexGold's subsidiary, Goldboro Gold Mines Inc. (GGM), US$24 million in exchange for a 2.9% net smelter return (NSR) royalty. The NSR will apply to all minerals produced from the Goldboro project until 1.25 million ounces of gold or gold equivalent is reached. After that threshold, the royalty will apply only to gold for the life of the project. NexGold has also retained a buyback option that would reduce the royalty to 1.0% under specified conditions. Following the announcement, NexGold's stock surged on high volume trading, climbing from CA$1.50 to CA$1.75 in a single day, marking a 17% gain on nearly 3.6 million shares traded.

The deal includes security over GGM's assets, including the Goldboro project and associated entities. NexGold intends to use the funds to repurchase an existing royalty, reduce debt, and support project development activities. The royalty financing closed  on September 29, 2025.

In addition to the royalty, NexGold signed a non-binding LOI with Appian for a senior secured credit facility of up to US$175 million. The facility, if finalized, would be used to fund the construction and development of the Goldboro project. The LOI is not yet a definitive agreement and will require further negotiation, board approvals, and regulatory consents. According to the company, terms will be disclosed once a final agreement is executed.

Kevin Bullock, NexGold's CEO, stated, "This royalty financing provides NexGold with important non-dilutive capital to help advance Goldboro towards construction, as well as deleveraging the balance sheet."

Gold at a Turning Point as Demand Surpasses Supply

Gold prices continued to rise sharply in 2025, with multiple market observers noting a confluence of macroeconomic forces, supply constraints, and shifting investor behavior as key drivers. As of mid-September, gold had gained over 40% year-to-date, briefly surpassing US$3,700 per ounce. Chris Reilly of RiskHedge described the performance as one of the strongest since 1979, highlighting the metal's durability as a long-term asset untethered to trade flows or economic growth.

Institutional interest in gold has also increased. On September 17, Matthew Piepenburg of Gold Switzerland attributed part of the rally to declining confidence in fiat currencies and noted that gold's Tier-1 reclassification by the Bank for International Settlements had restored its role as a central bank reserve asset. Piepenburg linked the shift to ongoing concerns about U.S. fiscal policy, suggesting that gold was benefiting from a broader reallocation of global capital.

Underlying supply and demand dynamics have further supported the price. A report published on September 18 by Ahead of the Herd revealed that gold demand in 2024 reached 4,974.5 tonnes, outpacing total mine production of 3,661.2 tonnes. The resulting 1,370-tonne shortfall was covered through recycled material. The report labeled this imbalance as a symptom of "peak gold," noting that even with exploration and development underway, production has not kept pace with consumption.

Gold sector optimism remained elevated in late September as miners in Western Australia pointed to continued upside despite already historic gains. According to a report from Stockhead on September 25, Pantoro Managing Director Paul Cmrlec said there had been "a step change in the need for gold" as it increasingly gains traction as a store of value in a world shaped by inflation, tariffs, and shifting monetary policy. He noted that major banks and industry analysts continued to see growth potential within the current cycle even after gold climbed past US$3,700 per ounce.

The same Stockhead report quoted Ora Banda Managing Director Luke Creagh, who reinforced the long-term outlook by stating, "It'll get to US$10,000, we just don't know when, whether that's one year or 50 years." The article highlighted that with gold up roughly 40% year-to-date, producers such as Ora Banda and Pantoro are channeling strong cash flows into organic growth strategies. Ora Banda, now valued at about US$2 billion, is expanding underground operations at its Davyhurst project, while Pantoro is targeting a production increase at the Norseman mine to 200,000 ounces annually. Both companies have emphasized that the strength in gold pricing has enabled reinvestment in assets that had long been underfunded, supporting expansion even as other parts of the Australian economy contract.

Analysts Endorse NexGold's Dual-Project Strategy

*On August 15, John Newell of John Newell & Associates rated NexGold as a "Strong Speculative Buy," citing its position as a mid-tier gold developer with over 6 million ounces in total mineral resources. He highlighted NexGold's plan to bring two assets into production (the Goldboro Gold Project and the Goliath Gold Complex), each targeting approximately 100,000 ounces of gold annually. Newell pointed to positive economic studies supporting both projects, referencing an after-tax net present value (NPV) of CA$336 million for Goliath at a US$1,750 gold price, and CA$328 million for Goldboro at US$1,600. He concluded that NexGold "offers investors a rare combination of scale, jurisdictional safety, and near-term catalysts."

On August 21, analyst Ron Stewart reiterated Red Cloud's Buy rating and CA$4.00 target price, calling attention to NexGold's tier-one jurisdiction exposure and strong development pipeline. "We believe NexGold has one of the largest, most advanced-stage development asset portfolios in Canada," he wrote. The firm assigned CA$2.00 per share of value to Goldboro and CA$1.70 to Goliath, with CA$0.30 attributed to cash and other assets. Stewart also pointed to the August 19 receipt of Goldboro's final major permit as a key milestone, bringing the project closer to shovel-ready status and strengthening the company's development timeline.

Advancing One of Nova Scotia's Most-Ready Gold Projects

The Goldboro Gold Project is among the most advanced gold development assets in Nova Scotia. According to NexGold's September 2025 investor presentation, 

the project is fully permitted provincially, with only a Fisheries Act Authorization outstanding federally, with a feasibility study (FS) completed in 2022. The FS outlines a ~11-year open-pit mine life with average annual production of 100,000 ounces of gold, an after-tax internal rate of return (IRR) of 25.5%, and average all-in sustaining costs (AISC) of US$849 per ounce at a base gold price of US$1,600 per ounce.

The project has received key provincial and federal approvals, including an Environmental Assessment, Industrial Approval, Crown Land Lease, and a Schedule 2 Amendment. Infrastructure plans include a fully lined tailings facility, on-site employee accommodations, and water management systems, all designed within a single watershed to reduce permitting complexity.

NexGold has looked at the potential of a phased development strategy. The initial phase will focus on open-pit mining, with potential underground development later in the mine life. The company recently completed a 12,000-meter drill program to expand near-surface mineralization and has identified additional targets along a 51-kilometer strike zone.

With the US$24 million royalty financing announced and a framework in place for up to US$175 million in potential project debt, the company is positioned to advance toward a construction decision at Goldboro. NexGold also continues to progress its Goliath Gold Complex in Ontario, which has received federal environmental approval and is similarly staged for development.

Ownership and Share Structure

The company notes that management and insiders own 2.9% of NexGold.  Institutions and strategic investors, including Frank Giustra who owns 7.0%, own 51.9% of the shares in the company.      

NexGold has 161.8 million shares issued and outstanding and a market cap of CA$265 million.