White Gold Corp (TSX-V:WGO) has entered into an arrangement agreement with its wholly owned subsidiary, W2 Critical Minerals Corp (Spinco), for a spin-out.
The agreement will accompany the transfer of its portfolio of copper, molybdenum, tungsten, and critical mineral properties in west-central Yukon.
Spinco will become a dedicated, standalone vehicle and spin out common shares.
White Gold will focus on advancing its White Gold Project, which hosts four near-surface gold deposits that host an estimated 1.73 million ounces of gold in indicated resources and 1.26 million ounces of gold in inferred resources.
White Gold CEO David D’Onofrio says the spin-out timing aligns “exceptionally well with the strong and growing support” seen from Yukon and federal governments for developing critical minerals.
“Recent initiatives focused on advancing critical mineral exploration, improving infrastructure, streamlining permitting, and strengthening collaboration across western and northern Canada reinforce Yukon’s position as a globally desirable jurisdiction for discovery and development,” D’Onofrio says.
“By creating this dedicated critical minerals company, we believe we are enhancing shareholder value and also advancing opportunities that are increasingly central to Canada’s long-term economic and supply chain strategies.”
Vice President of Exploration Dylan Langille says the company has built “one of the most comprehensive regional geochemical and geological datasets in the Yukon”.
“Assets such as Bridget, Isaac, and Wolf exhibit the size, metal zonation, and geophysical signatures typically associated with large, fertile porphyry systems, yet remain largely untested by drilling,” Langille says.
“Spinning these assets into a dedicated vehicle allows them to be advanced more effectively with the technical focus and disciplined exploration strategy they warrant.”
Spinco will conduct a private placement of up to 20 million subscription receipts at C$0.25 for up to C$5 million ($5.11 million) in connection with the spin-out agreement.
White Gold Corp is a Canadian gold exploration company operating exclusively in the White Gold District, south of Dawson City in northwest Yukon, Canada.
Write to Maddison Elliott at Mining.com.au
Images: White Gold Corp