TORONTO, ONTARIO--(Marketwired - March 21, 2017) - White Gold Corp. (TSX VENTURE:WGO) (the "Company") has closed the brokered private placement of 5,555,500 common shares (the "Shares") of the Company, issued on a flow-through basis, at a price of C$1.80 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 GMP Securities L.P. and Clarus Securities Inc. and including Primary Capital Inc. (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, 2018. The Company will renounce the Qualifying Expenditures to subscribers of Shares for the fiscal year ended December 31, 2017.
In connection with the Offering, Agnico Eagle Mines Limited ("Agnico") maintained its approximate 19.93% interest in the Company.
The Agents received a cash commission equal to 5.5% of the gross proceeds of the Offering. The Agents also received compensation options equal to 5.5% 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$1.70 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 of four months and one day.
Agnico, an insider 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.
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.
