Westhaven Completes Brokered Private Placement FOR Gross Proceeds of $4.6 Million
TSX-V:WHN
WESTHAVEN COMPLETES BROKERED PRIVATE PLACEMENT FOR GROSS
PROCEEDS OF $4.6 MILLION
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED
STATES.
Vancouver, B.C. – May 15, 2025 – Westhaven Gold Corp. (TSX-V:WHN) (“Westhaven” or the
“Company”) is pleased to announce the closing of its previously announced brokered private
placement (the " Offering") for aggregate gross proceeds of $4,600,000, which includes the full
exercise of the agent’s option for proceeds of $600,000. Under the Offering, the Company sold
(i) 19,022,708 units of the Company (each, a “Unit”) at a price of $0.12 per Unit for gross proceeds
of $2,282,725 from the sale of Units, and (ii) 17,165,000 common shares of the Company that
will qualify as “flow-through shares” within the meaning of subsection 66(15) of the Income Tax
Act (Canada) (each, a “ FT Share”, and collectively with the Units, the “ Offered Securities”) at a
price of $0.135 per FT Share for gross proceeds of $2,317,275 from the sale of FT Shares.
Each Unit consists of one common share of the Company (each, a “ Unit Share”) and one-half of
one common share purchase warrant (each whole warrant, a “ Warrant”). Each whole Warrant
entitles the holder to purchase one common share of the Company (each, a “Warrant Share”) at
a price of $0.18 at any time on or before May 15, 2027.
Red Cloud Securities Inc. (the “ Agent”) acted as sole agent and bookrunner in connection with
the Offering. In consideration for their services, the Agent received a cash commission of
$276,000 and 2,171,262 non-transferable broker warrants (the “Broker Warrants”). Each Broker
Warrant is exercisable for one common share of the Company (each, a “Broker Share”) at a price
of $0.12 per Broker Share at any time on or before May 15, 2027.
The Offered Securities were sold to purchasers by way of the “accredited investor” exemption
under National Instrument 45-106 – Prospectus Exemptions in the provinces of Alberta, British
Columbia, Quebec, Ontario and Saskatchewan and to purchasers in certain offshore jurisdictions.
The Unit Shares, Warrants, FT Shares and Warrant Shares issued and issuable from the sale of
Offered Securities, and the Broker Shares, are subject to a hold period under Canadian securities
laws ending on September 16, 2025.
The Company intends to use the net proceeds from the sale of Units for working capital and
general corporate purposes. The gross proceeds from the sale and issuance of the FT Shares will
be used to incur “Canadian exploration expenses” on the Company’s projects in British Columbia
and will qualify as “flow-through mining expenditures”, as defined in subsection 127(9) of the
Income Tax Act (Canada) (collectively, the “Qualifying Expenditures”), which will be incurred on
or before December 31, 2026 and renounced to the subscribers under the Offering with an
effective date no later than December 31, 2025 in an aggregate amount not less than the gross
proceeds raised from the issue of the FT Shares. In addition, with respect to British Columbia
resident subscribers or those who are eligible individuals under the Income Tax Act (British
Columbia), the Qualifying Expenditures will be eligible for the 20% BC mining flow-through share
tax credit.
Although the Company announced the possible sale of flow through units of the Company to be
sold to charitable purchasers (“ Charity FT Units”), the Agent and the Company determined not
to proceed with the sale of any Charity FT Units.
Related Party Transaction
Members of the Company’s management, board of directors and certain other insiders
participated in the Offering acquiring an aggregate of 2,459,000 Units for aggregate proceeds of
$295,080. The issuance of Units to insiders pursuant to the Offering constitutes a “related party
transaction” within the meaning of Multilateral Instrument 61-101 - Protection of Minority
Security Holders in Special Transactions (“MI 61-101”). The Company relies on exemptions from
the formal valuation and minority shareholder approval requirements provided under sections
5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that participation in the Offering by insiders will
not exceed 25% of the fair market value of the Company’s market capitalization.
The securities offered have not been, nor will they be, registered under the U.S. Securities Act,
as amended, or any state securities law, and may not be offered, sold or delivered, directly or
indirectly, within the United States, or to or for the account or benefit of U.S. persons, absent
registration or an exemption from such registration requirements. This news release does not
constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of
securities in any state in the United States in which such offer, solicitation or sale would be
unlawful.
On behalf of the Board of Directors
WESTHAVEN GOLD CORP.
“Ken Armstrong”
Ken Armstrong, President & CEO
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.
About Westhaven Gold Corp.
Westhaven is a gold-focused exploration company targeting low sulphidation, high-grade,
epithermal style gold mineralization within Canada’s newest gold district, the Spences Bridge
Gold Belt. Westhaven controls ~61,512 hectares (~615 square kilometres) within four gold
properties spread along this underexplored belt. The Shovelnose Gold Project is the most
advanced property, with an updated 2025 Preliminary Economic Assessment that validates the
Project’s potential as a robust, low cost and high margin 11-year underground gold mining
opportunity with average annual life-of-mine gold production of 56,000 ounces and having a
Cdn$454 million after-tax NPV6% and 43.2% IRR (base case parameters of US$2,400 per ounce
gold, US$28 per ounce silver and CDN/US$ exchange rate of $0.72). Initial capital costs are
projected to be Cdn$184 million with a payback period of 2.1 years. Please see Westhaven’s news
release dated March 3rd, 2025 ( Link: March 3, 2025 News Release ) for details of the updated
PEA. The technical report supporting this disclosure can be found under the Company’s profile
on Sedar+ ( www.sedarplus.ca) and on the Company’s website. The Shovelnose Gold Project is
situated off a major highway, near power, rail, large producing mines, pipelines and within
commuting distance from the city of Merritt, which translates into low-cost exploration and
development. Qualified Person: The technical and scientific information in this news release has
been reviewed and approved by Peter Fischl, P.Geo, who is a Qualified Person for the Company
under the definitions established by National Instrument 43-101 Standards of Disclosure for
Mineral Projects. Westhaven trades on the TSX Venture Exchange under the ticker symbol WHN.
For further information, please call 604-681-5558 or visit Westhaven’s website at
www.westhavengold.com.
Forward Looking Statements:
This press release contains "forward-looking information" within the meaning of applicable Canadian and United
States securities laws, which is based upon the Company's current internal expectations, estimates, projections,
assumptions and beliefs. The forward-looking information included in this press release are made only as of the date
of this press release. Such forward-looking statements and forward-looking information include, but are not limited
to, statements concerning the Company's expectations with respect to the Offering; and the use of proceeds of the
Offering. Forward-looking statements or forward-looking information relate to future events and future performance
and include statements regarding the expectations and beliefs of management based on information currently
available to the Company. Such forward-looking statements and forward-looking information often, but not always,
can be identified by the use of words such as "plans", "expects", "potential", "is expected", "anticipated", "is
targeted", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negatives
thereof or variations of such words and phrases or statements that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause
the actual results, performance, or achievements of the Company to be materially different from any future results,
performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors
include, among others, and without limitation: the Company will not be able to raise sufficient funds to complete its
planned exploration program; that the Company will not derive the expected benefits from its current program; the
Company may not use the proceeds of the Offering as currently contemplated; the Company may fail to find a
commercially viable deposit at any of its mineral properties; the Company’s plans may be adversely affected by the
Company’s reliance on historical data compiled by previous parties involved with its mineral properties; mineral
exploration and development are inherently risky industries; the mineral exploration industry is intensely competitive;
additional financing may not be available to the Company when required or, if available, the terms of such financing
may not be favourable to the Company; fluctuations in the demand for gold or gold prices generally; the Company
may not be able to identify, negotiate or finance any future acquisitions successfully, or to integrate such acquisitions
with its current business; the Company’s exploration activities are dependent upon the grant of appropriate licenses,
concessions, leases, permits and regulatory consents, which may be withdrawn or not granted; the Company’s
operations could be adversely affected by possible future government legislation, policies and controls or by changes
in applicable laws and regulations; there is no guarantee that title to the properties in which the Company has a
material interest will not be challenged or impugned; the Company faces various risks associated with mining
exploration that are not insurable or may be the subject of insurance which is not commercially feasible for the
Company; the volatility of global capital markets over the past several years has generally made the raising of capital
more difficult; inflationary cost pressures may escalate the Company’s operating costs; compliance with
environmental regulations can be costly; social and environmental activism can negatively impact exploration,
development and mining activities; the success of the Company is largely dependent on the performance of its
directors and officers; the Company’s operations may be adversely affected by First Nations land claims; the Company
and/or its directors and officers may be subject to a variety of legal proceedings, the results of which may have a
material adverse effect on the Company’s business; the Company may be adversely affected if potential conflicts of
interests involving its directors and officers are not resolved in favour of the Company; the Company’s future
profitability may depend upon the world market prices of gold; dilution from future equity financing could negatively
impact holders of the Company’s securities; failure to adequately meet infrastructure requirements could have a
material adverse effect on the Company’s business; the Company’s projects now or in the future may be adversely
affected by risks outside the control of the Company; the Company is subject to various risks associated with climate
change, the Company is subject to general global risks arising from epidemic diseases, the ongoing conflicts in
Ukraine and the Middle East, rising inflation, tariffs and interest rates and the impact they will have on the Company’s
operations, supply chains, ability to access mining projects or procure equipment, supplies, contractors and other
personnel on a timely basis or at all is uncertain; as well as other risk factors in the Company’s other public filings
available at www.sedarplus.ca. Readers are cautioned that this list of risk factors should not be construed as
exhaustive. Although the Company believes that the expectations reflected in the forward-looking information are
reasonable, there can be no assurance that such expectations will prove to be correct. The Company cannot
guarantee future results, performance, or achievements. Consequently, there is no representation that the actual
results achieved will be the same, in whole or in part, as those set out in the forward-looking information. The
Company undertakes no duty to update any of the forward-looking information to conform such information to
actual results or to changes in the Company’s expectations, except as otherwise required by applicable securities
legislation. Readers are cautioned not to place undue reliance on forward-looking information.