pcNewsWire – White Gold Corp. (TSX-V: WGO) has successfully completed the acquisition of entities holding the White Gold, Black Fox, JP Ross, Yellow, and Battle properties from Kinross Gold Corporation for C$10 million in cash, the issuance to Kinross of 17.5 million common shares of the Company and up to C$15 million in deferred payments specifically related to the advancement of the White Gold Properties.
White Gold has also completed its previously announced non-brokered private placement with Agnico Eagle Mines Limited for gross proceeds of $8,755,560.
As of today, Agnico and Kinross each own approximately 19.9% of the total number of issued and outstanding common shares of the company.
News Release
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White Gold Corp. Completes Acquisition of White Gold Properties from Kinross Gold Corporation and Closes Financing with Agnico Eagle Mines Limited
Toronto, Ontario – White Gold Corp. (TSX.V: WGO) (the “Company”) is pleased to announce that, further to its news release dated May 18, 2017, it has successfully completed the acquisition of entities holding the White Gold, Black Fox, JP Ross, Yellow, and Battle properties (the “White Gold Properties”) from Kinross Gold Corporation (“Kinross”) for C$10 million in cash, the issuance to Kinross of 17.5 million common shares of the Company and up to C$15 million in deferred payments specifically related to the advancement of the White Gold Properties (the “Acquisition”).
The Company is also pleased to announce that it has completed its previously announced non-brokered private placement (the “Offering”) with Agnico Eagle Mines Limited (“Agnico”) pursuant to which Agnico, in order to maintain its pro rata ownership interest in the Company, subscribed for 4,356,000 common shares of the Company at a price of C$2.01 per common share, for gross proceeds to the Company of C$8,755,560. The net proceeds from the Offering were used to fund a portion of the C$10 million cash payment under the Acquisition. The securities issued to Agnico pursuant to the Offering are subject to a statutory four month and one day hold period.
As of today, Agnico and Kinross each own approximately 19.9% of the total number of issued and outstanding common shares of the Company.
“With the closing of the acquisition, the Company now controls approximately 40% of the White Gold District and we look forward to working with both Agnico and Kinross as we continue to work towards unlocking the value of this highly prospective land package in the Yukon,” said Shawn Ryan, Chief Technical Advisor of the Company.
The White Gold Properties are made up of 4,280 mineral claims encompassing approximately 86,000 hectares. The Acquisition consolidates and expands the Company’s substantial land position which now represents approximately 40% of the White Gold District, and adds approximately one million ounces of gold grading between 2.7 to 3.19 g/t gold on the Golden Saddle area based on historic estimates of Measured and Indicated Resources on the White Gold Property. Additional information relating to the White Gold Properties can be found in the news release of the Company announcing the Acquisition dated May 18, 2017, which is available on the Company’s website (www.whitegoldcorp.ca) and issuer profile on SEDAR (www.sedar.com).
Advisors and Counsel
In connection with the Acquisition, GMP Securities L.P. acted as financial advisor to the Company and Cassels Brock & Blackwell LLP acted as legal advisor. Clarus Securities Inc. also acts as an advisor to the Company.
Qualified Person
Unless otherwise indicated, the scientific and technical information contained in this news release has been reviewed and approved by Jodie Gibson, P.Geo, of GroundTruth Exploration Inc. who is a “qualified person” within the meaning of NI 43-101. GroundTruth Exploration Inc. is owned by the spouse of a director of the Company.
About White Gold Corp.
The Company owns a portfolio of 19,438 quartz claims across 30 properties covering over 390,000 hectares representing approximately 40% of the Yukon’s White Gold District. Preliminary exploration work has produced several prospective targets. The claim packages are bordered by sizable gold discoveries owned by Goldcorp Inc. and Western Copper and Gold Corporation. The Company has outlined an aggressive exploration plan to further explore its properties. For more information visit www.whitegoldcorp.ca.
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 ddonofrio@whitegoldcorp.ca
