Mr. David D'Onofrio reports
WHITE GOLD CORP. ANNOUNCES CLOSING OF FULLY SUBSCRIBED $4.4 MILLION PRIVATE PLACEMENT
White Gold Corp. has closed a non-brokered private placement for aggregate gross proceeds of approximately $4.4-million. Agnico Eagle Mines Ltd. participated in the offering in order to maintain its partially diluted ownership in the company at 19.8 per cent. The offering consisted of the sale of (i) 1,885,000 common shares in the capital of the company at a price of 38 cents per common share; and (ii) 9,025,780 common shares issued on a flow-through (FT) basis at a price of 41 cents per FT share.
"We are very grateful for the continued support of Agnico and our other shareholders and are now financed for what we hope to be another exciting and impactful exploration program in 2023 following the encouraging success of this past season. We have now considerably extended the known mineralized zone at the Betty Ford target, which is in close proximity to large gold and copper deposits and are excited to further explore this prospective property. We also look forward to continuing to advance our robust property pipeline for potential new discoveries and to further demonstrate the expansiveness of gold mineralization in the underexplored White Gold district and the effectiveness of our scientific, data-driven exploration methodologies," stated David D'Onofrio, chief executive officer.
Pursuant to an investor rights agreement between the company and Agnico dated Dec. 13, 2016, Agnico maintained its pro rata ownership interest in the company of 19.8 per cent, on a partially diluted basis following the completion of the offering, by acquiring 1,885,000 common shares under the offering.
The gross proceeds received from the sale of the FT shares will be used to incur Canadian exploration expenses as defined in Subsection 66.1(6) of the Income Tax Act (Canada) on the company's properties in the White Gold district of Yukon and renounced to subscribers in the offering with an effective date no later than Dec. 31, 2022. Such Canadian exploration expenses will also qualify as flow-through mining expenditures as defined in Subsection 127(9) of the Tax Act. The net proceeds from the sale of the common shares will be used for working capital and other general corporate expenses.
Participation by Agnico in the offering was considered a related-party transaction pursuant to Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). The company was exempt from the requirements to obtain a formal valuation or minority shareholder approval in connection with Agnico's participation in the offering in reliance of sections 5.5(a) and 5.7(1)(a) of MI 61-101. A material change report will be filed in connection with the participation of Agnico in the offering less than 21 days in advance of the closing of the offering, which the company deemed reasonable in the circumstances so as to be able to avail itself of potential financing opportunities and complete the offering in an expeditious manner.
The offered shares issued pursuant to the offering are subject to a statutory four-month-and-one-day hold period under applicable Canadian securities laws expiring on April 20, 2023. The offering is subject to the final acceptance of the TSX Venture Exchange.
About White Gold Corp.
White Gold owns a portfolio of 17,584 quartz claims across 30 properties covering approximately 350,000 hectares, representing over 40 per cent of the Yukon's emerging White Gold district. The company's flagship White Gold property hosts the company's Golden Saddle and Arc deposits which have a mineral resource of 1,139,900 ounces indicated at 2.28 grams per tonne (g/t) gold (Au) and 402,100 ounces inferred at 1.39 g/t Au. Mineralization on the Golden Saddle and Arc is also known to extend beyond the limits of the current resource estimate. The company's recently acquired VG deposit also hosts an inferred gold resource of 267,600 ounces at 1.62 g/t Au. Regional exploration work has also produced several other new discoveries and prospective targets on the company's claim packages which border sizable gold discoveries, including the Coffee project owned by Newmont Corp. with measured and indicated resources of 2.17 million ounces (Moz) at 1.46 g/t Au and inferred resources of 500,000 oz at 1.32 g/t Au, and Western Copper and Gold Corp.'s Casino project which has measured and indicated resources of 14.8 Moz Au and 7.6 billion pounds (lb) copper (Cu) and inferred resources of 6.3 Moz Au and 3.1 billion lb Cu.
Terry Brace, PGeo, vice-president of exploration for the company, is a qualified person as defined under National Instrument 43-101 (Standards of Disclosure of Mineral Projects) and has reviewed and approved the content of this news release.
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