Westhaven Gold Corp (TSXV: WHN) has secured a development partner for their Shovelnose Gold project in southern British Columbia. Dundee Corporation (TSX: DC.A) has agreed to a definitive agreement that will see the company acquire a 60% interest in the project, along with the Prospect Valley Gold Project, Skoonka Gold Project, and Skoonka North Project.
The projects, which are all located within the Spences Bridge Gold Belt, will see Dundee earn up to a 60% interest through certain project expenditures totaling $85 million. That investment is said to include a firm commitment of $30 million.
“Today’s announcement of a definitive earn-in agreement with Dundee Corporation is transformational for Westhaven, representing confidence in the potential for the Shovelnose Gold Project, and the broader Spences Bridge Gold Belt, to evolve into a multi-deposit, multi-generational gold mining camp in a region of British Columbia [..] Dundee is a proven and highly respected investor in the Canadian mining industry, with the financial strength and technical resources that will complement Westhaven’s management and operational team as we move to rapidly and responsibly advance Shovelnose through to a production decision,” commented Ken Armstrong, CEO of Westhaven Gold.
Under the terms of the definitive agreement, Dundee is to spend $30 million within three years of the effective date of the earn in agreement to earn an initial 25% interest. An additional $15 million, $20 million, and $20 million must then be spent to earn additional interests of 12.5%, 12.5%, and 10%, respectively on the fifth, sixth, and seventh anniversaries of the transaction.
Westhaven is set to remain as the operator of the projects until a 50% interest is earned by Dundee. A joint venture agreement is to be entered by the two parties, which will initially be comprised of three Westhaven and two Dundee nominees, which will transition as Dundee continues to earn in. Pro rata funding is expected from both parties throughout the development cycle of the project, with failure to contribute to result in ownership dilution at a 1.5x penalty rate.
Moving forward, project expenditures of $20 million are expected in 2026 alone, with the program expected to consist of infill and geotechnical drilling at the South Zone gold deposit, along with targeted exploration drilling and an expanded environmental baseline program. Project engineering is also expected to begin for a pre-feasibility study. 650 drill pads have been permitted for drilling through to January 2029.
“With a strong balance sheet and ample liquidity, we are choosing to enter a partnership at this stage as a matter of strategy. This structure allows us to advance a high-quality asset in a non-dilutive manner, share development risk appropriately, and position the project to deliver meaningful long-term value to Dundee shareholders,” commented Jonathan Goodman, CEO of Dundee.
As part of the arrangement, Dundee has also agreed to invest $3.0 million in Westhaven at $0.25 per share.
The transaction remains subject to shareholder approval.
A 2025 preliminary economic assessment assessed the Shovelnose project as having a $454 million after tax net present value, based on a proposed underground gold mine with expected annual production of 56,000 ounces of gold over an 11 year mine life.
Westhaven Gold last traded at $0.165 on the TSX Venture.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
