TORONTO, ONTARIO--(Marketwired - March 9, 2017) - White Gold Corp. (TSX VENTURE:WGO) (the "Company") is pleased to announce that it has entered into an agreement pursuant to which a syndicate of agents, co-led by GMP Securities L.P. and Clarus Securities Inc. and including Primary Capital Inc. (collectively, the "Agents") have agreed to sell, on a "best efforts" private placement basis, up to 5,555,500 flow-through common shares (the "Flow-Through Shares") at a price of C$1.80 per Flow-Through Share, for aggregate gross proceeds of up to approximately C$10.0 million (the "Offering").
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, 2018. The Company will renounce the Qualifying Expenditures to subscribers of Flow-Through Shares for the fiscal year ended December 31, 2017.
The Agents will receive a cash commission equal to 5.5% of the gross proceeds of the Offering. The Agents will also receive compensation options equal to 5.5% of the number of Flow-Through Shares sold under the Offering (each a "Compensation Option"). Each Compensation Option will entitle the Agents to purchase one common share of the Company at a price of C$1.70 per common share for a period of two years from the Closing Date (as defined below).
Pursuant to the Investor Rights Agreement between the Company and Agnico Eagle Mines Limited ("Agnico") dated December 13, 2016, Agnico has the right to participate in the Offering in order to maintain its 19.93% interest in the Company.
The Offering is scheduled to close on or about March 21, 2017 (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").
About White Gold Corp.
White Gold Corp. owns a portfolio of 14,648 quartz claims across 23 properties covering approximately 297,000 hectares representing approximately 30% of the Yukon's White Gold District. Preliminary exploration work has produced several highly prospective targets. The claim packages are bordered by sizable gold discoveries owned by majors including Kinross, Goldcorp and Western Copper & Gold. The Company has outlined an aggressive exploration plan to further explore its properties. For more information, visit www.whitegoldcorp.ca.
