White Gold closes $4.5m placement, stock jumps
White Gold (TSXV: WGO) has closed its previously announced private placement of approximately 6.66 million common shares at C$0.90 per share for gross proceeds of C$6 million.
Participants include mining billionaire Eric Sprott, certain funds managed by Sprott Asset Management LP, and insiders Pat DiCapo and David D’Onofrio. Upon closing of the financing, White Gold will have net working capital of approximately C$9 million.
Both Agnico Eagle Mines (TSX: AEM, NYSE: AEM) and Kinross Gold (TSX: K, NYSE: KGC) have exercised their rights to maintain their respective 17.1% interests in the company following the offering.
Proceeds of the offering will be used to kickstart White Gold’s 2020 exploration program, which is set to start in the coming weeks.
The program will involve diamond drilling at the Ryan’s Surpise target, located 2 km along strike from the company’s flagship Golden Saddle and Arc deposits. Exploration will also include diamond drilling at the Titan target, rotary air blast drilling at other high-priority targets, as well as mechanical trenching at existing targets on the JP Ross property.
The company holds a portfolio of 21,111 quartz claims across 33 properties covering over 420,000 hectares in Yukon’s White Gold District.
Shares of White Gold jumped 5.8% by midday Wednesday. The Toronto-based gold explorer has a market capitalization of C$112.3 million.