Nevada King Invests C$8M in Gold-Backed Securities
Nevada King Gold Corp., a company focused on advancing its 100% owned Atlanta Gold Mine project, has announced it has purchased C$8 million in exchange-traded securities backed by physical gold bullion held by the Royal Canadian Mint. This purchase is part of a treasury management program approved by the Company's Board of Directors and aims to provide exposure to approximately 1,240 ounces of gold.
The securities were acquired at an average cost of around US$4,340 per ounce, with the Company not anticipating liquidating this position for at least 12 months. To fund anticipated expenditures over the next 12 months, including the Phase 4 drill program, Nevada King holds portions of its treasury in interest-bearing operating accounts and short-term investments.
According to John Sclodnick, CEO of Nevada King, 'While this is a new approach to treasury management for an exploration stage company, our cash and short-term investments are sufficient to cover our anticipated spending beyond the next 12 months.' The Company's gold holdings expose its treasury to price fluctuations in gold, which can decline over short periods.