White Gold Corp. Announces C$15 Million Bought Deal Financing; Agnico Eagle Mines and Kinross Gold Corp Each Maintain Approximate 19.6% Interest
White Gold Corp. Announces C$15 Million Bought Deal Financing; Agnico Eagle
Mines and Kinross Gold Corp Each Maintain Approximate 19.6% Interest
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES
TORONTO, Oct. 16, 2018 (GLOBE NEWSWIRE) -- White Gold Corp. (TSX.V: WGO) (the "Company") is pleased to announce that it has
entered into an agreement pursuant to which Clarus Securities Inc. on its own behalf and on behalf of a syndicate of underwriters
(collectively, the “Underwriters”) have agreed to purchase, on a bought deal basis, 3,333,333 common shares ( “Common Shares”) and
5,000,000 flow-through common shares (the “Flow-Through Shares”) at a price of C$1.50 per Common Share and C$2.00 per Flow -
Through Share, to raise aggregate gross proceeds of C$15million (the “Offering”). The gross proceeds from the sale of the Flow-Through
Shares will be used by the Company to incur exploration expenditures on its properties in the White Gold District of the Yukon Territory (the
“Qualifying Expenditures”) prior to December 31, 2019. The Qualifying Expenditures will be renounced to subscribers of Flow -Through
Shares for the fiscal year ended December 31, 2018. The gross proceeds from the sale of the Hard Shares will be used for general
corporate expenses.
The Flow-Through Shares to be issued under the Offering will be offered by way of a short form prospectus in the provinces of British
Columbia, Alberta and Ontario, and the Common Shares to be issued under the Offering will be offered by way of private placement in
Canada and such other jurisdictions as may be determined by the Company and the Underwriters. Pursuant to existing investor rights
agreements between the Company and each of Agnico Eagle Mines Limited (“Agnico”) and Kinross Gold Corp (“Kinross”), both Agnico and
Kinross have the right to participate in the Offering in order to maintain their respective approximate 19.6% interests in the Company.
Agnico and Kinross have both indicated to the Company that they will maintain their interests in this regard by purchasing Common Shares
in the Offering. The Offering is scheduled to close on or about November 8, 2018 (the “Closing Date”) and is subject to certain conditions,
including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange (the “TSXV”).
The Underwriters will receive a cash commission equal to 6.5% of the gross proceeds from the Flow -Through Shares sold under the
Offering, and a cash commission equal to 2.0% of the gross proceeds from the Common Shares sold under the Offering. The Underwriters
will also receive compensation options equal to 6% of the number of Flow-Through Shares sold under the Offering (each a “Compensation
Option”). Each Compensation Option will entitle the Underwriters to purchase one common share of the Company at a price of C$2.00 per
common share for a period of 2 years from the Closing Date.
The Company is also pleased to announce the completion of the previously announced acquisition of the Henderson, Flow/Work Creek and
Birdman properties from Independence Gold Corp.
About White Gold Corp.
The Company owns a portfolio of 21,218 quartz claims across 34 properties covering over 423,000 hectares representing over 40% of the
Yukon’s White Gold District. The Company’s flagship White Gold property has a mineral resource of 960,970 ounces Indicated at 2.43 g/t
gold and 282,490 ounces Inferred at 1.70 g/t gold as set forth in the technical report entitled “Independent Technical Report for the White
Gold Project, Dawson Range, Yukon, Canada”, dated March 5, 2018, filed under the Company’s profile on SEDAR. Mineralization on the
Golden Saddle and Arc is also known to extend beyond the limits of the current resource estimate. Regional exploration work has also
produced several other prospective targets on the Company’s claim packages which border sizable gold discoveries including the Coffee
project owned by Goldcorp Inc. with a M&I gold resource(1) of 4.1M oz and Western Copper and Gold Corporation’s Casino project which
has P&P gold reserves (1) of 8.9M oz Au and 4.5B lb Cu. The Company has outlined an exploration plan. For more information visit
www.whitegoldcorp.ca.
(1) 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.
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, to: the
completion of the Offering; the anticipated benefits to the Company and its shareholders respecting the Company’s objectives, goals and
exploration activities conducted and proposed to be conducted at the White Gold 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 White Gold properties and the Company ’s other 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; and those factors described under the heading "Risks and Uncertainties" in the
Company’s most recently filed management ’s discussion and analysis. 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 any obligations to release publicly
any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.
Neither the TSX Venture Exchange (the “Exchange”) nor its Regulation Services Provider (as that term is defined in the policies
of the Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Contact Information:
David D’Onofrio
Chief Executive Officer
White Gold Corp.
(416) 643-3880