Vancouver, British Columbia--(Newsfile Corp. - June 10, 2025) - West Point Gold Corp. (TSXV: WPG) (OTCQB: WPGCF) (FSE: LRA0) ("West Point Gold" or the "Company") is pleased to announce the closing of its previously announced bought deal private placement for aggregate gross proceeds of approximately C$8 million (the "Offering"). The Underwriters purchased on a bought deal basis, an aggregate of 17,778,000 units (the "Units") of the Company at a price of C$0.45 per Unit (the "Offering Price") for aggregate gross proceeds to the Company of C$8,000,100. This total includes the full exercise of the Underwriters' option to purchase additional Units.
"As a result of West Point Gold's recent exploration success, the Company has been able to attract several high-quality institutional investors strengthening both the share registry and the Company's balance sheet," stated CEO Quentin Mai. "The Company is well positioned with the capital necessary to aggressively continue advancing its Gold Chain Project in Arizona."
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 Warrant entitles the holder thereof to purchase one common share of the Company (each, a "Warrant Share") at a price of C$0.55 at any time before 5:00 p.m. (Toronto time) on June 10, 2027. The expiry date of the Warrants will accelerate in the event the volume weighted average trading price of the common shares in the capital of the Company is equal to or exceeds C$0.90 per common share for a period of 20 consecutive trading days (an "Acceleration Event"). If an Acceleration Event occurs, the Warrants will expire 30 days after notice of such Acceleration Event.
The Offering was conducted by Cormark Securities Inc., as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters including Canaccord Genuity Corp. and Red Cloud Securities Inc. (collectively, the "Underwriters"). The Underwriters received a cash commission of C$480,006 equal to 6.0% of the gross proceeds of the Offering. As additional consideration for their services, the Underwriters were also issued 1,066,680 compensation warrants (the "Compensation Warrants") equal to 6.0% of the number of Units issued pursuant to the Offering. Each Compensation Warrant entitles the holder thereof to subscribe for one common share of the Company at a price of C$0.45 until June 10, 2027.
The Company intends to use net proceeds from the Offering for exploration and advancement of the Company's Gold Chain Project, sustaining and exploration expenditures on the Company's projects in Nevada, and for general working capital purposes, as further outlined in the Offering Document (as defined below).
All Units distributed in connection with the Offering were issued and sold pursuant to the "Listed Issuer Financing Exemption" available under Part 5A of National Instrument 45-106 - Prospectus Exemptions (the "LIFE Exemption") and in reliance on Coordinated Blanket Order 45-935 - Exemptions from Certain Conditions of the Listed Issuer Financing Exemption (the "Order"). A copy of the offering document under the LIFE Exemption dated May 29, 2025 (the "Offering Document") is available electronically on the Company's website and on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. Pursuant to the LIFE Exemption, all Units issued under the Offering to Canadian subscribers are not subject to a hold period in Canada in accordance with applicable Canadian securities laws and the policies of the TSX Venture Exchange (the "Exchange"). All other securities not issued pursuant to the LIFE Exemption, namely, the Compensation Warrants, are subject to a statutory hold period in accordance with applicable Canadian securities laws, expiring on October 11, 2025. The Offering remains subject to the final acceptance of the TSX Venture Exchange.
About West Point Gold Corp.
West Point Gold Corp. (formerly Gold79 Mines Ltd.) is a publicly listed company focused on gold discovery and development at four prolific Walker Lane Trend projects covering Nevada and Arizona, USA. West Point Gold is focused on developing a maiden resource at its Gold Chain project in Arizona, while JV partner Kinross is advancing the Jefferson Canyon project in Nevada.
For further information regarding this press release, please contact:
Aaron Paterson, Corporate Communications Manager
Phone: +1 (778) 358-6173
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FORWARD-LOOKING STATEMENTS:
Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. The use of any of the words "could", "intend", "expect", "believe", "will", "projected", "estimated" and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the Company's current belief or assumptions as to the outcome and timing of such future events including, among others, assumptions about future prices of gold, silver, and other metal prices, currency exchange rates and interest rates, favourable operating conditions, political stability, obtaining government approvals and financing on time, obtaining renewals for existing licenses and permits and obtaining required licenses and permits, labour stability, stability in market conditions, availability of equipment, availability of drill rigs, and anticipated costs and expenditures. The Company cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among other things: risks and uncertainties relating to West Point Gold's ability to complete any payments or expenditures required under the Company's various option agreements for its projects; and other risks and uncertainties relating to the actual results of current exploration activities, the uncertainties related to resources estimates; the uncertainty of estimates and projections in relation to production, costs and expenses; risks relating to grade and continuity of mineral deposits; the uncertainties involved in interpreting drill results and other exploration data; the potential for delays in exploration or development activities; uncertainty related to the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results may vary from those expected; statements about expected results of operations, royalties, cash flows, financial position may not be consistent with the Company's expectations due to accidents, equipment breakdowns, title and permitting matters, labour disputes or other unanticipated difficulties with or interruptions in operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and regulatory restrictions, including environmental regulatory restrictions. The possibility that future exploration, development or mining results will not be consistent with adjacent properties and the Company's expectations; operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather); metal price fluctuations; environmental and regulatory requirements; availability of permits, failure to convert estimated mineral resources to reserves; the inability to complete a feasibility study which recommends a production decision; the preliminary nature of metallurgical test results; fluctuating gold prices; possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, political risks, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks involved in the mineral exploration and development industry, and those risks set out in the filings on SEDAR+ made by the Company with securities regulators. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this corporate press release are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, other than as required by applicable securities legislation.
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.
Not for distribution to United States newswire services or for dissemination in the United States. Not an offer of securities for sale in the United States.
