White Gold (TSX-V:WGO) has secured court approval for the previously reported spinout of certain critical minerals properties located in Yukon, Canada, to W2 Critical Minerals.
As part of the spinout, which remains subject to final regulatory approvals, W2 Critical Minerals has upsized a previously reported financing to C$10 million ($10.03 million).
Under the financing, subscription receipts will be sold at C$0.25 per subscription receipt. The funds will be held in escrow by a trust company and released to W2 Critical Minerals on closing of the spinout.
W2 Critical Minerals plans to use the funds for exploration and advancing the critical mineral assets, alongside general working capital purposes.
White Gold CEO David D’Onofrio says the critical mineral assets have benefitted from over a decade of ground-up exploration, and now warrant the dedicated team, strategy, and capital that W2 will bring to advance them further.
“We are also pleased with progress of our exploration program to date, which includes our largest ever diamond drilling program on our flagship project designed to build upon the recently announced strong preliminary economic assessment results and demonstrate the potential to meaningfully further increase our gold resources and continue to make new discoveries, and eagerly await assays,” D’Onofrio says.
More drilling to come…
Diamond drilling has begun on a new target, the VG East extension zone — a 500m by 200m high gold-in-soil target located 1.3km east-northeast of the VG deposit. The zone sits on the south side of the same structure responsible for mineralisation seen at VG with additional details to be provided in due course.
At Golden Saddle 2.0, diamond drilling is expected to begin in the coming weeks. The target is considered a high-priority and is located 2.5km east-south-east of the Golden Saddle deposit.
It shares a geological and geophysical signature similar to the deposit, including a fault-intersection setting favourable for orogenic gold mineralisation and a robust east-west gold-in-soil anomaly with additional details to be provided in due course.
An additional 5,000m of diamond drilling is also planned and expected to begin this year on the White Gold and QV property targets.
Based on a technically straightforward open pit mining operation, ongoing review and optimisation initiatives, White Gold has also refined estimates from the PEA results.
This includes a change in internal rate of return (IRR) to 40.7% from 38%, a change in the payback period to 1.5 years from 1.7 years, and an after-tax net present value (NPV) of C$1.86 billion from C$1.91 billion at analyst consensus gold prices of $3,600.
At US$4,500 per ounce, the revised estimate for after-tax NPV is C$2.91 billion with an IRR of 55.8% and a payback period of 1.2 years.
White Gold Corp is a Canadian explorer focused on discoveries in Yukon’s emerging White Gold district.
Write to Aaliyah Rogan at Mining.com.au
Images: White Gold Corp
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