Westhaven Gold Secures Up to C$5 Million Through Private Placement

Westhaven Gold Corp. Secures Funding Through Private Placement

Westhaven Gold Corp. (TSX-V: WHN) is excited to share its recent agreement with Red Cloud Securities Inc., which will serve as the sole agent for a private placement that could generate gross proceeds of up to C$5 million. This funding effort, also referred to as the 'Market Offering', intends to bolster the company's exploration endeavors in Canada’s promising gold sector.

Details of the Private Placement Offering

The company plans to offer 10 million units priced at C$0.15 each. This initiative could raise approximately C$1.5 million from the sale of these units. Additionally, up to C$3.5 million will come from selling common shares that are characterized as 'flow-through shares' according to Canadian tax regulations. By utilizing these funds effectively, Westhaven aims to further its exploration projects, particularly focused on its Shovelnose property.

Structure of the Offering

Each unit will consist of one common share plus one-half of a common share purchase warrant. The warrants are valuable as they allow purchasers to acquire additional shares at a price of C$0.22 within a 24-month period following the closing of the Offering. Furthermore, an option is available for the Agent to sell up to an additional C$1 million worth of units prior to the offering's closing.

Projected Use of Proceeds

Net proceeds from this placement will primarily support working capital and essential corporate functions. Importantly, the proceeds from the flow-through shares will directly fund exploration activities on the company's mineral projects, focusing on complying with the investment requirements for the corresponding tax benefits. All expenditures are expected to be completed by year-end in accordance with regulatory guidelines.

Overview of Westhaven’s Exploration Focus

Westhaven Gold Corp. is not just securing financial resources; it is also making significant strides in the exploration sector. The Shovelnose project, one of its key ventures, is located in the Spences Bridge Gold Belt area—renowned for high-grade gold deposits. Covering over 60,000 hectares, Westhaven's mineral properties benefit from low-operating costs, owing to their proximity to infrastructure, including major highways and power sources.

Closing and Additional Information

The Offering is anticipated to close on or around a specified date, subject to the necessary regulatory approvals. A cash commission of 6% will be paid to Red Cloud Securities, reflecting the solid partnership formed through this agreement. In addition, Broker Warrants will be issued, further aligning interests between the company and its agents.

About Westhaven Gold Corp.

Westhaven is committed to diligent exploration and development of its mineral properties. By continually advancing its projects, particularly in the Spences Bridge Gold Belt, the company works to uncover the vast potential of its mineral resources and contribute positively to the gold exploration landscape.

Frequently Asked Questions

What is the main purpose of the private placement by Westhaven Gold Corp.?

The private placement aims to raise funds to support working capital and further exploration of the company's mineral projects in Canada.

How much money is Westhaven Gold Corp. looking to raise through this placement?

The company is targeting gross proceeds of up to C$5 million through this private placement.

What types of securities will be offered in the private placement?

Westhaven will offer units, flow-through shares, and flow-through units as part of this private placement.

What benefits do flow-through shares provide to investors?

Flow-through shares offer investors significant tax benefits, as the funds raised are specifically earmarked for exploration expenses, qualifying as 'flow-through mining expenditures'.

Where can I find more information about the company's offerings?

Investors seeking more details can visit Westhaven Gold Corp.'s official website or check their profile on SEDAR.

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