White Gold Corp. Closes C$10 Million Private Placement of Flow-Through Common Shares; Agnico Eagle Mines and Kinross Gold Corp Each Maintain 19.9% Interest
White Gold Corp. Closes C$10 Million Private Placement of Flow-Through
Common Shares; Agnico Eagle Mines and Kinross Gold Corp Each Maintain
19.9% Interest
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. WIRE SERVICES
TORONTO, July 05, 2018 -- White Gold Corp. (TSX.V:WGO) (OTC – Nasdaq Intl:WHGOF) (FRA:29W) (the "Company") has
closed the brokered private placement of 10,526,720 common shares (the “Shares”) of the Company, issued on a flow-through
basis, at a price of C$0.95 per Share, for aggregate gross proceeds of approximately C$10.0 million (the “Offering”). The
Offering was conducted by a syndicate of agents, co-led by Clarus Securities Inc. and GMP Securities L.P. and including
Primary Capital Inc., Canaccord Genuity Corp. and Sprott Private Wealth L.P. (collectively, the “Agents”).
The gross proceeds of the Offering will be used by the Company to incur Canadian exploration expenses (the “Qualifying
Expenditures”) on its properties in the White Gold District of the Yukon Territory prior to December 31, 2019. The Company
will renounce the Qualifying Expenditures to subscribers of Shares for the fiscal year ended December 31, 2018.
David D’Onofrio, Chief Executive Officer stated, “We are pleased to close this financing to maintain our strong financial position
and continue to pursue our exciting exploration program focused on new discoveries in the White Gold district and increasing
the size of our flagship Golden Saddle deposit. We would also like to thank all parties who have been instrumental in this
financing as well as Agnico and Kinross for their continued support.”
Following the Offering, Agnico Eagle Mines Limited (“Agnico”) will continue to hold approximately 19.9% of the Company and
Kinross Gold Corp. (“Kinross”) will continue to hold approximately 19.9% of the Company.
The Agents received a cash commission equal to 6.0% of the gross proceeds of the Offering, except with respect to Shares
sold to certain strategic investors where the cash commission was equal to 2.0%. The Agents also received compensation
options equal to 6.0% of the number of Shares sold under the Offering (each, a “Compensation Option”). Each Compensation
Option entitles the Agents to purchase one Share at a price of C$0.95 per common share for a period of two years from the
date of closing of the Offering.
The Shares issued pursuant to the Offering (and any Shares issued upon exercise of the Compensation Options) are subject
to a statutory hold period expiring on November 6, 2018. The Offering remains subject to the final approval 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 $0.95 per share, expiring on July 5, 2023. The
grant is subject to regulatory approval.
Agnico and Kinross, both insiders of the Company, acquired Shares in connection with the Offering. Pursuant to Multilateral
Instrument 61-101 – Protection of Minority Security Holders in Special Transactions , the Company notes that it has not filed a
material change report 21 days prior to the expected closing date of the Offering. A shorter period was reasonable and
necessary in the circumstances as the Company wished to complete the Offering in a timely manner following receipt of
required regulatory approval.
About White Gold Corp.
The Company owns a portfolio of 19,606 quartz claims across 30 properties covering over 390,000 hectares representing
approximately 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 262,220 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. Geologic models in this area conceptually include an estimated seven million to 10
million tonnes grading between one g/t to 1.5 g/t gold. 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. (disclosed M&I gold resource of 4.1M oz) and Western Copper and Gold Corporation’s Casino project (disclosed
P&P gold reserves of 8.9M oz Au and 4.5B lb Cu). The Company has outlined an extensive exploration plan to further explore
its properties. For more information visit www.whitegoldcorp.ca.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to purchase securities. The securities offered in the Offering have not been
and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may
not be offered or sold in the United States or to, or for the benefit or account of, a U.S. person, except pursuant to an
available exemption from such registration requirements.
Company Contact
David D’Onofrio
Chief Executive Officer
Phone: (416) 643-3880
Email: [email protected]
Forward-Looking Statements
Information set forth in this news release involves forward-looking statements under applicable securities laws. The forward
looking statements contained herein include, but are not limited to, the anticipated size and completion the Offering and the
receipt of applicable regulatory approvals, and all such forward-looking statements are expressly qualified in their entirety by
this cautionary statement. The forward-looking statements included in this news release are made as of the date hereof and
the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as expressly required by applicable securities legislation. Although the
Company believes that the expectations represented in such forward-looking statements are reasonable, there can be no
assurance that such expectations will prove to be correct and, accordingly, undue reliance should not be put on such forward
looking statements. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities
described herein.