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White Gold stock surges as Agnico ups stake in private placement

White Gold is the largest quartz mineral claim holder in the District. Credit: White Gold Corp.

White Gold (TSXV: WGO) has arranged a non-brokered private placement of flow-through and “normal” common shares to raise gross proceeds of C$9 million ($7m).

The flow-through shares will be issued in two tranches at different prices: C$0.98 per share under the first tranche and C$0.80 per share under the second. The common shares will be priced at C$0.70 each.

Pursuant to an investor rights agreement signed in December 2016, Agnico Eagle Mines (TSX: AEM, NYSE: AEM) has indicated that it would increase its interest in the company to 19.9% on a post-offering basis.

Proceeds from the sale of flow-through shares will be used by the company for exploration purposes, while proceeds from the “normal” shares will be for working capital.

White Gold is currently the largest landholder within Yukon’s emerging White Gold District, with a portfolio of 31 properties covering more than 420,000 hectares, representing over 40% of the district.

The company’s flagship and namesake property hosts the Golden Saddle and Arc deposits, which have a mineral resource of 1,139,900 ounces indicated at 2.28 g/t Au and 402,100 ounces inferred at 1.39 g/t Au.

Shares of White Gold rose 7.3% by 12:15 p.m. in Toronto following the private placement announcement. The Yukon-focused gold explorer has a market capitalization of C$97.2 million ($76m).