The Prospector News

White Gold Corp. Announces Closing of Fully Subscribed $9 Million Private Placement; Strategic Shareholder Increases Interest to 19.9%

You have opened a direct link to the current edition PDF

Open PDF Close

Share this news article

White Gold Corp. Announces Closing of Fully Subscribed $9 Million Private Placement; Strategic Shareholder Increases Interest to 19.9%






White Gold Corp. (TSX-V: WGO) (OTCQX: WHGOF) (FRA: 29W)  is pleased to announce the closing of a non-brokered private placement for aggregate gross proceeds of approximately $9,000,000 in which Agnico Eagle Mines Limited (TSX: AEM) (NYSE: AEM) increased its partially-diluted ownership in the Company to 19.9%. David D’Onofrio, Chief Executive Officer of White Gold, also participated in the Offering. The Offering was comprised of: (i) 3,185,714 common shares in the capital of the Company at a price of $0.70 per Common Share; (ii) 2,464,286 Common Shares issued on a “flow-through basis” at a price of $0.98 per Tranche I FT Share; and (iii) 5,443,750 Common Shares issued on a “flow-through basis” at a price of $0.80 per Tranche II FT Share


“We are very grateful for the continued support of Agnico and our other shareholders and are now fully financed for what we expect to be another exciting and impactful exploration program in 2022. This past season we drilled one of the best holes in the district to date with the maiden diamond drill program on our Betty property and also continued to demonstrate the potential to increase our significant defined gold resources. We are excited to follow up on these and other targets to further demonstrate the expansiveness of gold mineralization in the 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 December 13, 2016, Agnico elected to increase its ownership interest in the Company to 19.9% on a partially-diluted basis following the completion of the Offering. Agnico acquired 5,650,000 Offered Shares and Mr. D’Onofrio acquired 93,750 Offered Shares pursuant to the Offering.


The gross proceeds received from the sale of the Tranche I FT Shares and Tranche II 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 the Yukon Territory and renounced to subscribers in the Offering effective December 31, 2021. 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 general corporate expenses.


Participation by each of Agnico and Mr. D’Onofrio 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 the participation of Agnico and Mr. D’Onofrio 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 and Mr. D’Onofrio 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 23, 2022. The Offering is subject to the final acceptance of the TSX Venture Exchange.


About White Gold Corp.


The Company owns a portfolio of 21,111 quartz claims across 31 properties covering over 420,000 hectares representing over 40% 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 g/t Au and 402,100 ounces Inferred at 1.39 g/t Au(1). Mineralization at the Golden Saddle and Arc is also known to extend beyond the limits of the current resource estimate. The Company’s VG Deposit acquired in March 2019 hosts an Inferred gold resource of 267,000 ounces at 1.62 g/t Au(2). 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 Corporation with Measured and Indicated Resources of 2.14 Moz at 1.20 g/t Au, and Inferred Resources of 0.23 Moz at 1.07 g/t Au(3), and Western Copper and Gold Corporation’s Casino project which has Measured and Indicated Resources of 14.5 Moz Au and 7.6 Blb Cu and Inferred Resources of 6.6 Moz Au and 3.3 Blb Cu(4). For more information visit


(1) See White Gold Corp. technical report titled “Technical Report for the White Gold Project, Dawson Range, Yukon Canada”, dated July 10, 2020, prepared by Dr. Gilles Arseneau, P.Geo., and Andrew Hamilton, P.Geo., available on SEDAR.


(2) See White Gold Corp. press release dated November 11, 2021 “White Gold Corp. Announces 16% Increase to Inferred Resource at its VG Deposit Located 11 km North of its Flagship Golden Saddle and Arc Deposits, Yukon, Canada” available on SEDAR.


(3) See Newmont Corporation press release titled “Newmont Reports 2020 Mineral Reserves of 94 Million Gold Ounces Replacing 80 Percent of Depletion”, dated February 10, 2021:


(4) See Western Copper and Gold Corporation technical report titled “Preliminary Economic Assessment, Yukon Cnada”, dated August 2, 2020, prepared by M3 Engineering & Technology Corp., available on SEDAR.


Qualified Person


Terry Brace, P.Geo. and 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.


Posted December 23, 2021

Share this news article


ExGen: Phoenix Reports Drill Assays for the Navarre Creek Target of the Empire Mine, Idaho

ExGen Resources Inc. (TSX-V: EXG; OTC: BXXRF) is pleased to provi... READ MORE

May 29, 2024

Lithium Ionic Announces Feasibility Study Results for the Bandeira Lithium Project, Minas Gerais, Brazil

178,000tpa of spodumene concentrate production (5.5% Li2O) 14-yea... READ MORE

May 29, 2024

NexGen Announces Additional Mineralization Discovered at Patterson Corridor East, Assays from RK-24-183 and Commencement of Expanded Summer Exploration Program

NexGen Energy Ltd. (TSX: NXE) (NYSE: NXE) (ASX: NXG) is pleased ... READ MORE

May 29, 2024

Red Pine Intercepts Significant Mineralization at the Wawa Gold Project, including 5.58 g/t gold over 18.44 m including 72.20 g/t gold over 0.88 m

Red Pine Exploration Inc. (TSX-V: RPX) (OTCQB: RDEXF) is pleased ... READ MORE

May 29, 2024

Copper Lake Resources Reports Results of Drilling at Marshall Lake Copper-Zinc-Silver VMS Property

Copper Lake Resources Ltd. (TSX-V: CPL) (Frankfurt: WOI) (OTC: WTCZF) is... READ MORE

May 29, 2024

Copyright 2024 The Prospector News