White Gold Corp Secures Funding for Exploration Projects

White Gold Corp Announces Successful Private Placement

White Gold Corp. (TSX.V: WGO, OTCQX: WHGOF, FRA: 29W) has successfully closed the first tranche of a non-brokered private placement, generating approximately $5 million in gross proceeds. This funding will significantly bolster the company's exploration initiatives in a region rich in mineral potential.

Details of the Financing Round

The successful financing comprises the sale of various shares to interested investors. Specifically, it includes 8,063,000 common shares categorized as flow-through shares under the Income Tax Act, priced at C$0.26 each. In addition, the placement features 5,092,593 shares qualifying for the federal 30% Critical Mineral Exploration Tax Credit, available at $0.27 per share. Lastly, it encompasses 7,013,182 common shares priced at C$0.22 each. Collectively known as the Offered Shares, this offering positions White Gold to capitalize on further exploration endeavors.

CEO’s Statement on the Offering

David D’Onofrio, the Chief Executive Officer, expressed gratitude for the robust support from both new and existing shareholders. He noted, "This financing will fully support our impactful 2025 exploration program and aims to unlock the vast potential of our portfolio, situated in a mineral-rich area of Canada. We’ve previously delineated significant gold resources while also making exciting new discoveries."

Participation by Insiders and Regulatory Aspects

Sustaining investor confidence, Agnico Eagle Mines Limited indicated its intention to acquire approximately 1,136,363 of the HD Shares as part of this offering, with an expected closing around January in the following year. Insider participation further reinforces market confidence, as several key officers and directors have committed to purchasing over 2.3 million common shares alongside Agnico's involvement.

Regulatory Compliance and Exemptions

The participation by insiders is classified as a related party transaction under Multilateral Instrument 61-101, which safeguards minority security holders. White Gold has been exempt from acquiring formal valuations or minority shareholder approval pertaining to insider involvement, according to specific provisions of the Instrument.

Utilization of Proceeds from the Offering

The financial gains from selling flow-through shares will be strategically dedicated towards Canadian exploration expenses, aligned with the term's definition in the Income Tax Act. The funds generated from CFT shares will similarly be designated for flow-through critical mineral mining expenditures related to properties in the Yukon’s White Gold District by the end of next year.

Impact of Finder’s Fees

As part of closing activities for the offering, White Gold has allocated cash finders’ fees equivalent to 7% of the funds raised, alongside 472,405 finders’ warrants, granting the right to procure common shares at a set price for three years post-issuance. Such provisions reward the contributions of those who facilitated the placement.

About White Gold Corp.

White Gold Corp is a significant player in the mining sector, with a diverse portfolio featuring over 15,876 quartz claims across 26 properties, covering approximately 315,000 hectares. Roughly 40% of the Yukon’s White Gold District is under the company’s domain. The flagship White Gold project is noteworthy for hosting four near-surface gold deposits cumulatively estimated at over 2 million ounces of gold in various resource categories. In addition to ongoing resource delineation, several new discoveries have emerged, considerably bolstering the company’s claim packages.

Explore Potential Discoveries

Strategic proximity to major gold projects such as Newmont’s Coffee project, boasting substantial measured and indicated resources, enhances the prospective value of White Gold’s exploration activities. This prime location underscores the promising future White Gold holds in the sector.

Frequently Asked Questions

What is the purpose of White Gold Corp's recent funding?

The funding aims to facilitate its 2025 exploration program, enabling the company to leverage its extensive mineral resources effectively.

What types of shares were sold in the private placement?

The private placement consisted of flow-through shares, CFT shares, and HD shares, each priced differently to meet specific investor qualifications.

Who participated in the financing round?

Both new and existing shareholders participated, including significant purchases by insiders and company directors, highlighting their confidence in future plans.

What does the term 'flow-through shares' mean?

Flow-through shares are a type of investment that allows the investor to claim tax deductions related to exploration expenses made by the company.

How does insider participation affect investor confidence?

Insider participation generally boosts market confidence, as it signals that those with inside knowledge of the company’s prospects are willing to invest their resources.

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