VANCOUVER – White Gold Corp. (WGO-TSXV) has arranged a $4.41 million private placement with proceeds earmarked for Canadian exploration expenses at the company’s properties in the White Gold district of the Yukon Territory.
The non-brokered private placement will consist of flow-through shares priced at 41 cents per share, and common shares priced at 38 cents each.
News of the financing came after the close of trading on December 8, 2022, when White Gold shares closed at 36 cents. The shares are trading in a 52-week range of 82 cents and 31 cents.
Headed by Shawn Ryan, the company’s technical advisor, White Gold is using exploration techniques developed by Ryan’s company GroundTruth Exploration to speed up the process of finding gold-bearing anomalies.
The company is the largest land holder in the Yukon’s White Gold District. It owns a portfolio of 17,584 quartz claims across 30 properties, covering 350,000 hectares. They include the flagship White Gold property, which covers 34,951 and is located 95 kilometres south of Dawson City.
The White Gold property hosts the company’s Golden Saddle and Arc deposits, which host 1.1 million ounces of indicated gold resources at 2.28 g/t gold and 402,100 ounces of inferred resources at 1.39 g/t gold. The company’s recently acquired VG deposit also hosts an inferred resource of 267,600 ounces at 1.62 g/t gold.
Under the terms of an investor rights agreement between White Gold and Agnico Eagle Mines Ltd. (AEM-TSX, AEM-NYSE) dated December 13, 2016, Agnico has indicated that it intends to maintain its interest in the company at 19.8%.
Regional exploration work has produced several new discoveries and prospective targets on the company’s claim package which border sizeable gold discoveries, including the Coffee project, now held by Newmont Corp. [NGT-TSX, NEM-NYSE] and Western Copper & Gold Corp.’s [WRN-TSX, NYSE American] Casino copper-gold-molybdenum deposit in the Canadian Yukon.
Closing of the offering is expected to occur around December 23, 2022.
Earlier this year, Newmont said the Yukon and Canadian governments, in partnership with Yukon First Nations have come to a joint decision to accept the Executive Committee’s recommendation that the Coffee Gold project be allowed to proceed.
As proposed by Newmont, it will consist of four open pit gold mines located about 130 kilometres south of Dawson City. The project is expected to have a construction period of 30 months, followed by a 10- year operations phase and 11-year closure phase.
Coffee is a structurally-hosted hydrothermal, gold deposit. At the time it was acquired by Goldcorp it had a total indicated gold resource of 3.0 million ounces (63.7 million tonnes of grade 1.45 g/t) including total gold mineral reserves of 2.2 million ounces (46.4 million tonnes at 1.45 g/t). On top of that is an inferred resource of 2.2 million ounces (52.4 million tonnes at 1.31 g/t).