White Gold Corp (TSXV: WGO) is the latest mining firm to announce a flow-through offering this week. The company last night announced it would be conducting a $9.0 million non-brokered financing, under which Agnico Eagle Mines (TSX: AEM) would be increasing its ownership in the company.
The offering will see a number of options for investors in terms of unit types, with flow through shares being offered at both $0.98 and $0.80 per share, while common shares are being offered at $0.70 per share. The company did not identify how much of the offering would be allocated to each unit type. Gross proceeds are expected to amount to $9.0 million from the offering.
Proceeds from both flow through portions of the financing are to be used for qualified exploration expenses, while proceeds from the sale of common shares are to be used for working capital and general corporate purposes. The company did not identify how much of the offering would be allocated to each unit type.
Further, while the company indicated that Agnico Eagle would be participating to return its ownership stake to 19.9% in the company, it is unclear just how much the firm has committed to the financing to maintain that position. The company originally invested in White Gold back in 2016, when it took a 19.93% stake in the company.
White Gold last traded at $0.68 on the TSX Venture.
Information for this briefing was found via Sedar and the companies 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.
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