White Gold (TSX-V:WGO) expects to complete the spinout of W2 Critical Minerals in the near term after closing two financing tranches worth C$6.76 million ($6.86 million).
White Gold’s wholly owned subsidiary issued 23.055 million subscription receipts at C$0.25 each in the first tranche, raising C$5.76 million.
Agnico Eagle Mines (TSX:AEM) subscribed for 4 million receipts through a separate C$1 million strategic investment.
The remaining C$3.24 million of the fully subscribed C$10 million non-brokered offering is expected to close shortly before the spinout.
Proceeds are being held in escrow by Marrelli Trust Company. Each receipt will convert into one W2 common share once the release conditions are met.
An investor rights agreement will allow Agnico Eagle to nominate one W2 director after the arrangement is completed, or two if the board expands to at least eight members.
Agnico Eagle can also participate in future equity financings to maintain its ownership or increase its holding to 19.99%. These rights terminate if its stake falls below 5%.
White Gold CEO David D’Onofrio says the spinout will provide the critical minerals portfolio with dedicated resources.
“The W2 critical mineral projects have benefited 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,” D’Onofrio says.
White Gold will announce the record and payment dates once the remaining conditions are met. Shareholders must hold their shares through the record date to receive W2 shares.
The financing comes as White Gold advances its flagship gold assets. Recent drilling extended ‘high-grade’ mineralisation at the Golden Saddle and VG deposits, as previously reported by Mining.com.au.
White Gold is a Canadian explorer controlling 15,364 quartz claims covering approximately 303,001 hectares in Yukon, Canada.
Write to France Pinzon at Mining.com.au
Main image: White Gold
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