White Gold Corp. Announces Fully Subscribed C$9 Million Private Placement; Strategic Shareholder to Increase Interest to 19.9%

White Gold Corp. Announces Fully Subscribed C$9 Million Private Placement; Strategic Shareholder to Increase Interest to 19.9%

TORONTO, Nov. 25, 2021 (GLOBE NEWSWIRE) — 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 …

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