NEVADA KING ANNOUNCES GOLD BULLION HOLDINGS AS PART OF TREASURY MANAGEMENT PROGRAM
Nevada King shifts part of its C$16M treasury into gold-backed securities while maintaining cash and short-term investments for near-term spending.
Rhea-AI Summary
Nevada King Gold (NKGFF) has allocated C$8M of its treasury to exchange-traded securities backed by physical gold bullion held by the Royal Canadian Mint, giving exposure to approximately 1,240 oz of gold at an average acquisition cost of about US$4,340 per ounce.
The company does not expect to liquidate this gold position for at least 12 months and plans to fund anticipated spending, including its Phase 4 drill program, from interest-bearing operating accounts and about C$5M in short-term investments such as GICs and short-duration investment-grade debentures. As of September 21, 2026, cash, short-term investments, and gold holdings totaled roughly C$16M. Management notes this approach ties a portion of the treasury to movements in the gold price.
Positive
- C$8M allocated to gold-backed exchange-traded securities, ~1,240 oz exposure
- Total cash, short-term investments, and gold holdings of ~C$16M as of Sept. 21, 2026
- C$5M in short-term GICs and investment-grade debentures with 1–10 month maturities
- Company states treasury covers anticipated spending beyond next 12 months, including Phase 4 drilling
Negative
- Gold-backed holdings expose treasury to gold price declines and FX risk versus US$/C$
- Market value of gold holdings may fall below cost, creating potential realized losses
- Gold-backed securities are not cash equivalents and may be less liquid than cash or short-term investments
- Fair value measurement of holdings may introduce volatility into reported financial results
AI-generated analysis. How Rhea-AI works. Not financial advice.
To fund anticipated expenditures over the next 12 months, including the Phase 4 drill program, the Company holds portions of its treasury in interest-bearing operating accounts, with an additional
John Sclodnick, CEO of
Risks Relating to the Treasury Management Program
The Company's gold holdings expose its treasury to the price of gold which can decline over short periods. The market value of the holdings may fall below their acquisition cost, and the Company may realize a loss if the holdings are sold. Because gold is priced in US dollars and the Company reports in Canadian dollars, the value of the holdings is also exposed to changes in the US/Canadian dollar exchange rate. A decline in value would reduce capital available to fund the Company's exploration programs. The exchange-traded securities are not cash equivalents and may be less liquid than cash or short-term investments and are subject to the terms of the securities and the performance of their issuer. The holdings are expected to be measured at fair value, which will introduce volatility into the Company's reported financial results from period to period. There is no assurance that holding gold will preserve or increase the value of the Company's treasury relative to holding cash.
About Nevada King Gold Corp.
Nevada King is focused on advancing and growing its
Please see the Company's website at www.nevadaking.ca.
Qualified Person
The scientific and technical information in this news release has been reviewed and approved by Nevada King VP Exploration, Justin Daley, P.Geo., a non-independent Qualified Person as defined by National Instrument 43-101.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements Regarding Forward Looking Information
This news release contains certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein, without limitation, statements relating to expected benefits of the Company's treasury management program, and the anticipated holding period for its gold-backed exchange-traded securities and short-term investments, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by Nevada King, are inherently subject to significant business, economic, technical, geologic, environmental, regulatory, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, the ability to complete proposed exploration work, the results of exploration, continued availability of capital, and changes in general economic, market and business conditions. The market value of the Company's gold holdings will fluctuate with the price of gold and may decline. The Company may realize a loss on disposition, and a decline in the gold price would reduce the capital available to fund future exploration and corporate costs. The exchange-traded securities are not cash equivalents and may be less liquid than cash or short-term investments. Holdings are expected to be measured at fair value, which may introduce volatility into the Company's reported results from period to period. The Company's gold holdings are subject to the terms of the securities and to the performance of the issuer. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these items. For a more detailed discussion of additional risks and other factors that could cause actual results to differ materially from those expressed or implied by forward-looking statements in this news release, please refer to the Company's filings with Canadian securities regulators available under the Company's profile on SEDAR+ at www.sedarplus.ca. Nevada King does not assume any obligation to update forward-looking statements should beliefs, opinions, projections, or other factors, change, except as required by applicable securities laws.
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SOURCE Nevada King Gold Corp.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How does Nevada King plan to use its short-term investments over the next year?
The company expects to hold its approximately C$5M in short-term investments, consisting of GICs and short-duration, investment-grade debentures with rolling maturities of one to ten months, to maturity. At that point, proceeds will either be moved into operating accounts to fund near-term expenditures or reinvested in similar securities with appropriate durations.
What gold resource does Nevada King report at its Atlanta Gold Mine project?
The Atlanta project hosts a pit-constrained oxide resource of 1,020 koz Au in the measured and indicated category (27.7M tonnes at 1.14 g/t) and an inferred resource of 99 koz Au (3.6M tonnes at 0.84 g/t), based on US$2,200/oz gold and US$25/oz silver, as disclosed in its NI 43-101 technical report.
Who is the Qualified Person for the technical information in this release?
The scientific and technical information in the news release has been reviewed and approved by Justin Daley, P.Geo., Nevada King’s VP Exploration, who is a non-independent Qualified Person as defined by National Instrument 43-101.