White Gold Corp. (TSX.V: WGO, OTCQX: WHGOF, FRA:
29W) (the “
Company” or “
White
Gold”) is pleased to announce a non-brokered private
placement of flow-through common shares at a price of $0.98 per
share (each a
“Tranche 1 Flow-Through Share”),
flow-through common shares at a price of $0.80 per share (each a
“
Tranche 2 Flow-Through Share”) and common shares
in the capital of the Company at a price of $0.70 per common share
(each a “
Common Share”) for total
gross proceeds of approximately $9,000,000.
Pursuant to an investor rights agreement between
the Company and Agnico Eagle Mines Limited (TSX: AEM, NYSE: AEM)
(“Agnico”) dated December 13, 2016, Agnico has
indicated that it intends to increase interest in the Company to
19.9% on a post-offering basis.
“We are very grateful for the continued support
of our exciting and impactful exploration activities in the
prolific White Gold District. Details on our future activities will
provided in due course,” stated David D’Onofrio, Chief Executive
Officer.
Each Tranche 1 Flow-Through Share and Tranche 2
Flow-Through Share shall be issued as a “flow-through share”, as
defined in subsection 66(15) of the Income Tax Act (Canada) (the
“Tax Act”). The gross proceeds from the sale of
the Tranche 1 Flow-Through Shares and the Tranche 2 Flow-Through
Shares will be used by the Company to incur “Canadian exploration
expenses” that will qualify as “flow-through mining expenditures”,
as such terms are defined in the Tax Act, on its properties in the
White Gold District of the Yukon Territory (the “Qualifying
Expenditures”) on or before December 31, 2022. The
Qualifying Expenditures will be renounced to subscribers of Tranche
1 Flow-Through Shares and Tranche 2 Flow-Through Shares with an
effective date no later than December 31, 2021. The net proceeds
from the sale of the Shares will be used for working capital and
other general corporate purposes.
The Tranche 1 Flow-Through Shares, the Tranche 2
Flow-Through Shares and the Shares to be issued under the Offering
will be offered pursuant to applicable exemptions from the
prospectus requirements under applicable securities laws. Closing
of the Offering is anticipated to occur on or about December 21,
2021 (the "Closing Date"). The securities issued
pursuant to the Offering will be subject to a statutory hold period
of four months plus one day from the Closing Date in accordance
with applicable securities legislation.
Participation by Agnico and any other insiders
of the Company (collectively, the “Insiders”), in
the Offering will be considered a “related party transaction”
pursuant to Multilateral Instrument 61- 101 – Protection of
Minority Security Holders in Special Transactions (“MI
61-101”). The Company will be 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 will be 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.
This proposed Offering is subject to receipt of
all required regulatory approvals, including the approval of the
TSX Venture Exchange (“TSXV”).
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, and Western Copper and Gold
Corporation’s Casino project. For more information visit
www.whitegoldcorp.ca.
(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.
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.
Cautionary Note Regarding Forward
Looking Information
This news release contains "forward-looking
information" and "forward-looking statements" (collectively,
"forward-looking statements") within the meaning of the applicable
Canadian securities legislation. All statements, other than
statements of historical fact, are forward-looking statements and
are based on expectations, estimates and projections as at the date
of this news release. Any statement that involves discussions with
respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions, future events or performance (often but
not always using phrases such as "expects", or "does not expect",
"is expected", "anticipates" or "does not anticipate", "plans",
“proposed”, "budget", "scheduled", "forecasts", "estimates",
"believes" or "intends" or variations of such words and phrases or
stating that certain actions, events or results "may" or "could",
"would", "might" or "will" be taken to occur or be achieved) are
not statements of historical fact and may be forward-looking
statements. In this news release, forward-looking statements
relate, among other things, the Offering, the use of proceeds from
the Offering, receipt of all required regulatory approvals
including the approval of the TSXV, the Company’s objectives, goals
and exploration activities conducted and proposed to be conducted
at the Company’s properties; future growth potential of the
Company, including whether any proposed exploration programs at any
of the Company’s properties will be successful; exploration
results; and future exploration plans and costs and financing
availability. These forward-looking statements are based on
reasonable assumptions and estimates of management of the Company
at the time such statements were made. Actual future results may
differ materially as forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to
materially differ from any future results, performance or
achievements expressed or implied by such forward looking
statements. Such factors, among other things, include: the expected
benefits to the Company relating to the exploration conducted and
proposed to be conducted at the White Gold properties; the receipt
of all applicable regulatory approvals for the Offering; failure to
identify any additional mineral resources or significant
mineralization; the preliminary nature of metallurgical test
results; uncertainties relating to the availability and costs of
financing needed in the future, including to fund any exploration
programs on the Company’s properties; business integration risks;
fluctuations in general macroeconomic conditions; fluctuations in
securities markets; fluctuations in spot and forward prices of
gold, silver, base metals or certain other commodities;
fluctuations in currency markets (such as the Canadian dollar to
United States dollar exchange rate); change in national and local
government, legislation, taxation, controls, regulations and
political or economic developments; risks and hazards associated
with the business of mineral exploration, development and mining
(including environmental hazards, industrial accidents, unusual or
unexpected formations pressures, cave-ins and flooding); inability
to obtain adequate insurance to cover risks and hazards; the
presence of laws and regulations that may impose restrictions on
mining and mineral exploration; employee relations; relationships
with and claims by local communities and indigenous populations;
availability of increasing costs associated with mining inputs and
labour; the speculative nature of mineral exploration and
development (including the risks of obtaining necessary licenses,
permits and approvals from government authorities); the
unlikelihood that properties that are explored are ultimately
developed into producing mines; geological factors; actual results
of current and future exploration; changes in project parameters as
plans continue to be evaluated; soil sampling results being
preliminary in nature and are not conclusive evidence of the
likelihood of a mineral deposit; title to properties; ongoing
uncertainties relating to the COVID-19 pandemic; and those factors
described under the heading "Risks Factors" in the Company's annual
information form dated July 29, 2020 available on SEDAR. Although
the forward-looking statements contained in this news release are
based upon what management of the Company believes, or believed at
the time, to be reasonable assumptions, the Company cannot assure
shareholders that actual results will be consistent with such
forward-looking statements, as there may be other factors that
cause results not to be as anticipated, estimated or intended.
Accordingly, readers should not place undue reliance on
forward-looking statements and information. There can be no
assurance that forward-looking information, or the material factors
or assumptions used to develop such forward-looking information,
will prove to be accurate. The Company does not undertake to
release publicly any revisions for updating any voluntary
forward-looking statements, except as required by applicable
securities law.
Neither the TSXV nor its Regulation
Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this
news release.
For Further Information, Please
Contact:
Contact Information:
David D’Onofrio Chief Executive Officer White
Gold Corp. (647) 930-1880 ir@whitegoldcorp.ca
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