Westhaven Successfully Closes $3.16 Million Fundraising
Westhaven Completes Significant Private Placement
VANCOUVER, British Columbia - Westhaven Gold Corp. (TSX-V:WHN) is thrilled to announce the successful closure of its non-brokered private placement, securing gross proceeds of $3.16 million. This strategic move, initially hinted at in mid-June, involved the issuance of both Units and Charity Flow-Through Units, highlighting Westhaven's commitment to its expansion plans in the gold exploration sector.
Details of the Fundraising Effort
The offering consisted of 8,333,333 standard Units sold at $0.12 each, generating $1,000,000, along with 12,500,000 Charity FT Units sold at $0.1728, amassing $2,160,000. The principal investors in this offering included well-known financiers Eric Sprott and Earthlabs Inc., both of whom played a pivotal role in facilitating the charitable donations associated with this fundraising.
Use of Proceeds for Exploration
With the funds raised, Westhaven plans to allocate the proceeds primarily towards Canadian exploration expenses that qualify as “flow-through mining expenditures” under Canadian tax regulations. The projects targeted for these investments lie within the Spences Bridge Gold Belt, an area known for rich gold deposits. Specific initiatives include advancing the ongoing exploration drilling program at the Shovelnose gold project to a comprehensive 5,000 meters, thereby aiming to further unlock its considerable economic potential.
Expanding Field Operations
This fundraising initiative will also enhance Westhaven's efforts related to a recently conducted preliminary economic assessment highlighting a promising underground gold mining opportunity at the Shovelnose project. With potential outputs of 56,000 ounces of gold annually and a solid net present value, the opportunities at this site are expansive. The Company expects to leverage these insights to bolster its development strategies in the ever-evolving gold market.
Structure of the Units
Each Unit issued comprises one common share, alongside one-half of a share purchase warrant, allowing for future expansion and investment flexibility. Charity FT Units will provide the necessary flow-through share benefits to qualifying investors, setting the ground for continued engagement from high-net-worth individuals and corporates alike.
Financial Advisors and Future Plans
A finder’s fee of $66,823, along with 250,000 broker warrants, was facilitated by Red Cloud Securities Inc., ensuring that the private placement is managed professionally and efficiently. The entirety of the raised capital will work towards not only exploration but also essential institutional support for general corporate needs.
Overcoming Challenges Ahead
Every investment comes with its risks and uncertainties. Westhaven acknowledges the competitive nature of the gold exploration sector and the reliance on aggressive exploration strategies to maintain viability. However, the firm remains committed to its outlined plans, believing in the long-term potential of their properties as market conditions evolve.
Conclusion and Commitment
On behalf of the Board of Directors, Ken Armstrong, President and CEO, underscores the Company's dedication to maximizing shareholder value through robust financial strategies. Should you have any inquiries regarding this development, please do not hesitate to contact Westhaven.
Frequently Asked Questions
What is the amount raised in the private placement?
The private placement raised a total of $3.16 million.
Who were the primary investors in this fundraising effort?
Eric Sprott and Earthlabs Inc. were significant investors in this round.
What projects will the raised funds support?
The funds will primarily support exploration efforts in the Spences Bridge Gold Belt, particularly the Shovelnose gold project.
How many Units were sold in the private placement?
A total of 8,333,333 Units and 12,500,000 Charity FT Units were sold.
What is Westhaven Gold Corp.'s ticker symbol?
The company's ticker symbol is WHN, trading on the TSX Venture Exchange.
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