Canada: Signal Gold commences strategic process to propel Goldboro Project forward

The company is pleased to announce its engagement with BMO Capital Markets as its financial advisor to explore potential strategic alternatives aimed at advancing the Goldboro Project.

As detailed in the Feasibility Study dated January 11, 2022, Goldboro represents a robust, high-grade project with considerable potential in a rising gold price market. However, amidst the current challenging market conditions, where the company perceives Goldboro's inherent value to be significantly undervalued, Signal Gold is prioritizing capital efficiency. This includes minimizing shareholder dilution and maximizing overall value. Signal Gold acknowledges that a larger, better-capitalized, or cash-flow-generating entity may be better suited to advance or support the progression of Goldboro across the development timeline.

Strategic Alternatives Review

The review of strategic alternatives may encompass various options, including but not limited to, a joint venture transaction, a sale of the Company, the Project, or all of its assets, a merger, or other forms of strategic transactions. At present, no decisions have been made regarding any strategic alternatives, and there is no guarantee that exploring these options will result in any transaction or change.

The Company does not plan to issue announcements or updates unless it determines that further disclosure is warranted. Meanwhile, the focus remains on value creation through exploration efforts on the expanded land package and ongoing efforts to secure all remaining key Project permits.

BMO Capital Markets has been engaged to support the Company in its strategic alternatives review.

About signal gold 

Signal Gold is advancing the Goldboro Gold Project in Nova Scotia, a significant growth endeavor characterized by a positive Feasibility Study. The study illustrates an approximately 11-year open pit life of mine, projecting an average gold production of 100,000 ounces per annum with an average diluted grade of 2.26 grams per tonne gold. 

On August 3, 2022, the Goldboro Project achieved a pivotal regulatory milestone with its environmental assessment approval from the Nova Scotia Minister of Environment and Climate Change. The Company has subsequently submitted all key permits, including the Industrial Approval, Fisheries Act Authorization and Schedule 2 Amendment, and the Mining and Crown Land Leases. 

Moreover, the Goldboro Project presents promising opportunities for further Mineral Resource expansion, particularly towards the west along strike and at depth. The Company has consolidated 27,200 hectares (~272 km2) of prospective exploration land in the Goldboro Gold District.