TORONTO (miningweekly.com) – Triple-listed OceanaGold on Thursday continued its foray into US-based gold projects after it agreed to take a 19.9% stake in TSX-V-listed explorer NuLegacy Gold, which held the Nevada-based Iceberg gold deposit where it had established an exploration target of 90-million to 110-million tonnes grading between 0.9 g/t and 1.1 g/t gold.

OceanaGold, which has stock quoted on the TSX, the ASX and the NZX, would buy 47.66-million common shares of NuLegacy at a price of C$0.14 apiece, for gross proceeds of C$6.67-million.

The news sent NuLegacy’s stock jumping 47% on Thursday to C$0.22 apiece.

"This commitment provides NuLegacy with the funds and additional expertise to rapidly expand the Iceberg gold deposit. We are delighted to have been selected by OceanaGold in its diversification into North America's major gold trends,” NuLegacy chairperson Albert Matter stated.

NuLegacy noted that the financing would also fund the exploration of its 100% owned/controlled adjacent Idaho Resources Corporation claims with similar favourable geology as the Iceberg gold deposit. The 2016 exploration season was expected to start late-April/early-May.

Upon closing, which was expected by April 13, OceanaGold would own about 19.9% of NuLegacy's issued and outstanding shares on an undiluted basis, before giving effect to any shares purchased by Barrick Gold and/or Waterton Precious Metals Fund II Cayman, under their existing equity participation rights to maintain their current equity ownership interests in NuLegacy. The company also had the option to buy an additional 9.3-million shares of NuLegacy, subject to Barrick and/or Waterton exercising their participation rights.

Under the terms of the agreement, as long as OceanaGold held at least 5% of the then issued and outstanding common shares of NuLegacy, it would have the right to nominate one director to NuLegacy's board, appoint one representative to NuLegacy's technical committee, participate in all future equity financings of shares or convertible securities to maintain and/or increase its then equity ownership interest in NuLegacy to 19.9%, and have the right of 'first offer to negotiate', should a joint venture be contemplated for the purposes of financing the Iceberg project.

Melbourne-based OceanaGold had been on an acquisition streak over the past several quarters, notably having last year acquired Romarco Minerals’ Haile gold mine in the US, and Newmont Mining’s Waihi gold mine, in New Zealand.