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White Gold Corp. Announces Closing of Fully Subscribed C$6 Million Private Placement Led by Eric Sprott; Agnico Eagle and Kinross Maintain 17.1% Interest

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White Gold Corp. Announces Closing of Fully Subscribed C$6 Million Private Placement Led by Eric Sprott; Agnico Eagle and Kinross Maintain 17.1% Interest

 

 

 

 

 

Further to its news release dated May 15, 2020, White Gold Corp. (TSX-V: WGO) (OTC – Nasdaq Intl: WHGOF) (FRA: 29W) is pleased to announce the closing of a non-brokered private placement of 6,666,667 common shares of the Company, issued on a flow-through basis at a price of C$0.90 per FT Share for gross proceeds to the Company of C$6,000,000. Participants include Eric Sprott, certain funds managed by Sprott Asset Management LP, and insiders Pat DiCapo and David D’Onofrio. Upon closing of the Offering, the Company will have net working capital of approximately C$9M.

 

Pursuant to the Investor Rights Agreement between the Company and Agnico Eagle Mines Limited (TSX: AEM) (NYSE: AEM) dated December 13, 2016, Agnico has maintained its 17.1% interest in the Company following the Offering. Additionally, pursuant to the Investor Rights Agreement between the Company and Kinross Gold Corporation (TSX: K) (NYSE: KGC) dated June 14, 2017, Kinross has maintained its 17.1% interest in the Company following the Offering. In addition, certain other insiders of the Company acquired an aggregate of 611,112 FT Shares pursuant to the Offering.

 

“We are very grateful for the continued support of our major shareholders and excited to welcome Eric Sprott as a new shareholder. We look forward to kicking off our 2020 field season in the coming weeks where we will follow up on some of our exciting new discoveries and look to continue to increase our existing mineral resources,” stated David D’Onofrio, Chief Executive Officer.

 

2020 Exploration Program

 

The Company’s 2020 Exploration program is set to commence in the coming weeks. Further details are available in the Company’s news release dated May 20, 2020 and available on SEDAR, with additional details to be provided in due course.

 

2020 Exploration Program Highlights:

 

 

  • Ryan’s Surprise target: Diamond drill program to test for strike and down-dip extensions of mineralization encountered in 2019 diamond drilling. The Ryan’s Surprise target is located 2km along strike from the Company’s flagship Golden Saddle & Arc deposits which have a current mineral resource of 1,039,600 gold ounces indicated at 2.26 g/t Au and 508,700 gold ounces inferred at 1.48 g/t Au.
     
  • Titan target: Diamond drill program to test the extents of high-grade mineralization encountered in 2019 rotary air blast (RAB) drilling which included 72.81 g/t Au over 6.09 m from 10.67 m depth, within a 32 m zone of mineralization plus additional RC or RAB drilling to test similar north-trending magnetic high features within the magnetic low, and a separate northeast-striking gold-in-soil anomaly along the southern margin of the magnetic low feature.
     
  • Other High Priority Targets: Approximately 25 RAB holes will be drilled to test high-priority targets on the White Gold, Hen and JP Ross properties.
     
  • JP Ross Property: Mechanical trenching will be carried out on a number of existing targets on the JP Ross property highlighted by 2019 results from soil geochemistry, GT probe samples, VLF surveys, RAB drilling and geological and structural interpretations, in order to collect key structural data to aid in ongoing interpretations and future drill planning.
     
  • Extensive regional exploration work on other properties will include geologic mapping and prospecting, soil sampling, GT probe sampling, ultra high-resolution drone imagery, and ground magnetics and VLF surveying on the Betty, Nolan, Bonanza and Tea properties.

 

A district scale map outlining the Company’s planned 2020 exploration work areas and other images accompanying this news release can be found at 

http://whitegoldcorp.ca/investors/exploration-highlights/.

 

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 the Yukon Territory, and renounced to subscribers in the Offering effective December 31, 2020. Such Canadian exploration expenses will also qualify as “flow-through mining expenditures” as defined in subsection 127(9) of the Tax Act. Participation by the Insiders 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 Insiders’ participation in the Offering in reliance of sections 5.5(a) and 5.7(1)(a) of MI 61-101. A material change report was filed in connection with the participation of Insiders 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 FT 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 October 10, 2020. The Offering is subject to the final acceptance of the TSX Venture Exchange.

 

The Company also announces that a total of 3,250,000 options to purchase common shares of the Company have been granted to directors, officers, employees and consultants at an exercise price of $0.90 per share, expiring on June 10, 2025. The grant is subject to regulatory approval.

 

About White Gold Corp.

 

The Company owns a portfolio of 21,111 quartz claims across 33 properties covering over 420,000 hectares representing over 40% of the Yukon’s prolific 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 1,039,600 ounces Indicated at 2.26 g/t gold and 508,700 ounces Inferred at 1.48 g/t gold. 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 a historic Inferred gold resource of 230,000 ounces at 1.65 g/t Au(1). 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 2.17 Moz at 1.46 g/t Au, and Inferred Resources of 0.50 Moz at 1.32 g/t Au(2), and Western Copper and Gold Corporation’s Casino project which has Proven and Probable reserves of 8.9 Moz Au and 4.5 Blb Cu(2). For more information visit www.whitegoldcorp.ca.

 

(1) See Comstock Metals Ltd. technical report titled “NI 43-101 TECHNICAL REPORT on the QV PROJECT”, dated August 19, 2014, available on SEDAR.
(2) Noted mineralization is as disclosed by the owner of each property respectively and is not necessarily indicative of the mineralization hosted on the Company’s property.

 

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 June 10, 2020

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