Western Copper and Gold Corporation (TSX:WRN
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| Western Copper and Gold Corporation (TSX:WRN / NYSE MKT:WRN) is a Vancouver based exploration and development company. Western Copper and Gold was formed in October 2011 when Western Copper Corp. spun out all assets except Casino, and renamed the company to emphasize the significant gold and copper resource. Western Copper and Gold holds significant gold, copper and molybdenum resources and reserves in its Casino Project located in the Yukon Territory, Canada. http://www.westerncopperandgold.com/s/news.as...tID=551463 December 20, 2012 | Release 10-2012 |
WESTERN COPPER AND GOLD TO SELL ROYALTY FOR US$32 MILLION
VANCOUVER, BC: Western Copper and Gold Corporation (“Western” or the “Company”) (TSX:WRN; NYSE MKT:WRN) announces that the Company and its wholly owned subsidiary, Casino Mining Corporation, have entered into a royalty sale agreement (the “Agreement”) dated December 20, 2012 with 8248567 Canada Limited, an arm's length purchaser, (the “Purchaser”) whereby the Purchaser agrees to cancel its 5% net profits interest royalty in the Casino Project and pay US$32 million in exchange for a 2.75% net smelter returns royalty in the Casino Project (the “Transaction”).
In accordance with the terms of the Agreement, among other things:
| a. | The Purchaser will obtain a 2.75% net smelter returns royalty (the “NSR Royalty”) on the future sale of any metals and minerals derived from the Casino Project; | |
| b. | The Purchaser will agree to cancel the 5% net profits interest in the Casino Project that it already owns on certain claims held by Western; and | |
| c. | Western will receive a cash payment of US$32 million upon completion of the Transaction for Casino Project development expenditures and general working capital. |
Western has the option to repurchase 0.75% of the NSR Royalty (resulting in a 2.00% remaining royalty) for the following amount:
| a. | US$39 million if the amount is paid on or prior to December 31, 2013; or | |
| b. | US$59 million if the amount is paid after January 1, 2014 but on or before December 31, 2017. |
This Transaction is subject to any required regulatory approvals and conditions usual for a Transaction of this nature and is expected to close on or about December 21, 2012.
“This Transaction is expected to provide us with sufficient capital to complete the permitting and detailed engineering of the Casino Project and have it ready for project financing and construction;” said Dale Corman, Chairman and CEO, “furthermore, it helps to affirm the tremendous value of the project.”
CIBC World Markets Inc. acted as financial advisor to Western Copper & Gold in connection with this transaction.
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