White Gold (TSXV: WGO) has cleared the final significant hurdle in separating its critical minerals portfolio, securing an Ontario Superior Court of Justice order approving the plan of arrangement that creates W2 Critical Minerals Corp.
The arrangement moves a package of critical mineral properties in Yukon’s White Gold District into the new company. White Gold will retain roughly 19.9% of W2 once financing is complete, with the balance distributed to shareholders as a dividend-in-kind at the rate of one W2 share for every five White Gold shares held. Existing White Gold positions are unaffected.
What remains is largely procedural. The deal still needs final TSX Venture Exchange approval, and the company said it will announce record and payment dates once all closing conditions are satisfied, which it expects in the near term.
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W2 intends to apply for a TSXV listing shortly after closing.
The funding side meanwhile has moved in the company’s favour. W2 upsized its non-brokered private placement to $10 million from $5 million, selling subscription receipts at $0.25 each. Proceeds sit in escrow until the spin-out closes, then go toward exploration on the critical mineral assets and general corporate purposes.
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“We are pleased to announce the significant progress on the spin-out of White Gold’s most prospective critical mineral assets,” said Chief Executive Officer David D’Onofrio. “These assets have benefited from over a decade of ground-up exploration, and now warrant the dedicated team, strategy and capital that W2 will bring to advance them further.”
On the gold side, White Gold has completed 11,500 metres of diamond drilling this season across Golden Saddle, VG and Ryan’s Surprise, and has begun testing a new VG East target.
White Gold last traded at $2.40 on the TSX Venture.
