NEVADA KING ANNOUNCES GOLD BULLION HOLDINGS AS PART OF TREASURY MANAGEMENT PROGRAM
Nevada King Gold Corp. has announced that it purchased C$8 million in exchange-traded securities backed by physical gold bullion held by the Royal Canadian Mint. This acquisition represents exposure to approximately 1,240 ounces of gold, with the securities acquired at an average cost of about US$4,340 per ounce. The company does not plan to liquidate this position for a minimum of 12 months.
To fund anticipated expenditures over the next year, including a Phase 4 drill program, Nevada King maintains portions of its treasury in interest-bearing operating accounts, with an additional C$5 million in short-term investments. These investments consist of Guaranteed Investment Certificates (GICs) and short-duration, investment-grade debentures, with maturities ranging from one to 10 months. The company plans to hold these securities to maturity, at which point the proceeds will either be retained in operating accounts for near-term expenses or reinvested in similar securities.
John Sclodnick, CEO of Nevada King, stated that this approach to treasury management is new for an exploration-stage company. He emphasized that the company’s cash and short-term investments are sufficient to cover spending beyond the next 12 months, including ongoing drilling activities. Sclodnick noted that holding gold allows the company to take a longer-term view on its treasury allocation.
However, the company acknowledges the risks associated with its treasury management program. The value of the gold holdings may fluctuate with market prices, which could result in losses if the holdings were to be sold. Additionally, changes in the US/Canadian dollar exchange rate could affect the value of the gold securities. The securities are not cash equivalents, may be less liquid than cash or short-term investments, and are subject to the performance of their issuer.
Nevada King Gold Corp. is focused on advancing its 100% owned Atlanta Gold Mine project in southeast Nevada, which hosts a resource of 1,020,000 ounces of gold in the measured and indicated category, and an inferred resource of 99,000 ounces. For complete details about the mineral resource, refer to the NI 43-101 Technical Report filed under the company's profile on SEDAR+.