Western Exploration Secures $1.7 Million for Growth Initiatives

Private Placement Announcement by Western Exploration

Western Exploration Inc. (TSXV: WEX; OTCQX: WEXPF), a prominent player in precious metals exploration, has revealed an exciting opportunity for strategic investment. The company is launching a non-brokered private placement with an offering of 1,603,773 units priced at CDN $1.06 each. This initiative aims to raise approximately CDN $1.7 million in gross proceeds.

Details of the Offering

Each unit will comprise one variable voting share and a half share of a variable voting share purchase warrant. Investors in this offering can expect each full warrant to allow the purchase of an additional share at a price of CDN $1.36, with a 24-month exercise period following the expected closing date.

Strategic Partnership

The entirety of the units has been committed to a new strategic investor, TXAU Ventures, LLC, based in Texas. This partnership highlights Western Exploration’s ability to attract significant investments from noteworthy sources, strengthening its foundation for future projects.

Funds Utilization

The net proceeds from this offering are earmarked for several critical purposes. Primarily, the funds will advance a pre-feasibility study of the Doby George Deposit and support essential baseline studies to commence permitting processes. Additionally, the company plans to allocate a portion of the funds for general corporate purposes, which could enhance operational flexibility.

Timeline and Regulatory Compliance

The private placement is set to close on or about a specified date, contingent upon the final approval from the TSX Venture Exchange. Following the close, the issued securities will be subject to a hold period under Canadian securities law, ensuring compliance with regulatory standards.

About Western Exploration

Western Exploration has a storied history of over 25 years in advancing various exploration projects in Nevada. The company's fundamental asset is the Aura gold-silver project, which is strategically located approximately 120 kilometers north of Elko, Nevada. This project encompasses three distinct gold and silver deposits: Doby George, Gravel Creek, and Wood Gulch. Western Exploration continues to build a reputation as a leader in the North American precious metals sector.

Company's Future Prospects

The commitment to the Aura project highlights Western Exploration's focus on resource optimization and responsible development. Additionally, the integration of the new investor's resources could facilitate accelerated exploration, leading to potential discoveries and a consistent growth trajectory for the company.

As the market dynamics for precious metals evolve, Western Exploration is poised to adapt and thrive, meeting new challenges with innovative solutions and strategic partnerships. The emphasis on excellence in exploration and development will guide the company's path forward, focusing on value creation for its stakeholders.

Frequently Asked Questions

What is the aim of Western Exploration's recent placement?

The aim is to raise CDN $1.7 million to fund the pre-feasibility study of the Doby George Deposit and to support other general corporate purposes.

Who is the investor involved in the placement?

The investor in this offering is TXAU Ventures, LLC, located in Texas.

How does this placement affect the company's future operations?

This placement will provide the necessary funds to advance exploration projects and could enhance operational capabilities, driving future growth.

What are the main components of each unit offered?

Each unit comprises one variable voting share and half a variable voting share purchase warrant, with specific pricing structures set for additional shares.

How long is the expected hold period for the new securities?

All securities issued under the offering will have a hold period expiring four months and one day following the closing date.

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